Securities Industry Has Low Spirits

By Chet Currier, Ap | THE JOURNAL RECORD, December 1, 1989 | Go to article overview

Securities Industry Has Low Spirits


Chet Currier, Ap, THE JOURNAL RECORD


BOCA RATON, Fla. - The stock market may be up but spirits are down at many of the nation's investment firms on the threshold of the 1990s.

Some said Thursday that the securities industry is slipping into its own private recession, even as its customers continue to enjoy the fruits of a historic seven-year bull market.

``We're in for a tough time, I think,'' said Robert Downey, a partner at Goldman, Sachs & Co. and the 1990 chairman of the Securities Industry Association, which is holding its annual convention here.

``I think we are facing a long period of change,'' John Gutfreund, chairman and chief executive of Salomon Brothers Inc., said in an interview.

Even as stock prices remained strong this year, brokerage firms have suffered from a litany of woes ranging from fierce competition, high overhead, and declines in such formerly lucrative business as arranging buyouts financed by ``junk bond'' debt.

By all accounts, the squeeze is nothing yet like the debacles the industry suffered in the 1930s or late 1960s and early 1970s, when securities firms and individual careers toppled in devastating numbers.

But layoffs are up and profits are down. On Wednesday, one of the industry giants, Shearson Lehman Hutton, announced a sweeping management shakeup.

Various estimates show securities industry employment down by some 30,000 jobs, or more than 10 percent, in the last two years, with more cuts in the offing.

And in an equally telling sign, the price of a seat, or membership, at the New York Stock Exchange recently has fallen below $500,000, compared to a Summer 1987 peak of $1.15 million.

``This industry is going through the same kind of restructuring that we saw in manufacturing in the early 1980s,'' said Robert Goodman, senior economist at the firm of Putnam Financial Services Inc. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Securities Industry Has Low Spirits
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.