Securities Brokers List/J. Johnson/dt1st/mark2nd
Executive Summary
The erratic stock market has made the last few months very busy for stockbrokers everywhere, and L.A. County is no exception. The 3,960 registered securities brokers at the top 25 brokerage firms have experienced early mornings and late nights trying to keep pace with the market’s ups and downs.
The brokerage industry is still taking shape as the dust settles from two major 1997 mergers. This year’s No. 1 firm, Morgan Stanley Dean Witter & Co., is the result of a May 1997 merger between Morgan Stanley & Co. and Dean Witter, Discover & Co. Also, in September 1997 Smith Barney Inc.’s parent company, Travelers Group, bought Salomon Inc. for $9.3 billion to create L.A. County’s No. 2 firm, Salomon Smith Barney Inc.
Four of the top five local brokerages are headquartered in New York. SunAmerica Inc.’s securities practices and the Financial Network Investment Corp. are the largest of the firms on the list that are headquartered locally. Many firms also provide investment banking, investment research, retirement planning, and other financial services.
The Pacesetter
Morgan Stanley Inc. and Dean Witter, Discover & Co. merged in May 1997, and the result is one of the largest financial services companies in the world and the biggest securities brokerage firm in L.A. County.
Since the merger, Morgan Stanley Dean Witter has seen its stock price, revenues and employee totals increase nationwide. Headquartered in New York, the firm has 666 registered securities brokers in L.A. County, an increase of over 38 percent from Dean Witter’s L.A. totals two years ago.
The firm opened its first office here in the early 1930s, and now has 19 locations throughout L.A. County. Michael Noble, senior vice president and regional director, heads up the firm’s local operations at a regional headquarters in downtown L.A.
Morgan Stanley Dean Witter is involved in a variety of financial services, including securities, trust and 401(k) management, insurance, and credit and loan services. All the company’s investment bankers and analysts work out of New York. Among its most successful brands are the Discover Card franchise, Van Kamper mutual funds and Discover Brokerage Direct, a successful Internet brokerage.
The firm employs nearly 49,000 people at 482 offices worldwide and currently has $373 billion of assets under management. For the fiscal year ended Nov. 30, 1998, Morgan Stanley Dean Witter reported record net income of $3.3 million, compared with $2.6 million in 1997. Revenues were $16.4 billion in 1998, up from $14.8 billion in 1997.
