Since I began my career in the financial services industry the market has become bigger and bigger and so much more complex. Like the markets, and some of those really opaque financial instruments they trade, Wall Street firms have responded. How? By getting bigger and more complex!
Do you remember these firms?
A.G. Edwards? Gone...swallowed up by a wolf in sheep's clothing who had already absorbed Wheat First, Everen (which used to be Prescott, Ball, and Turbin, and Blunt Ellis), First Albany and a slew of others. If you go back in time you can also throw in Bache and Prudential. Even Wachovia has been taken over by Wells Fargo.
Do you remember the great advertising slogans of the old big firms...
"Thank you Paine Webber"
"When EF Hutton talks, people listen"
"We make money the old fashion way..we earn it"
Even mother Merrill...owned by a bank???
All of them...gone!
Top management of these new gargantuan firms justify their size with great buzz words like "it gives us the scale, the scope, and a much larger footprint to compete". Sometimes I think that is just a cover for inept or poor management. On the surface these guys all look unique but after you peel away the veneer you find there is not an ounce of difference between any of them. Bigness just means sameness.
Big equals contempt for customers and for employees as well. For the monster to continue to grow it needs more food. What has all of this size meant to the small investor? "Sorry your account is not big enough; try our toll free number".
