Fulcrum Dumping Research, Focusing on I-Bank
The combination of large prop trading losses, a touch of fraud and some overly-generous guaranteed pay packages is spelling disaster for the research arm of Fulcrum Global Partners. Despite making $65 million in revenues in 2004, the company is finding it doesn’t have enough dough left this year to adequately compensate many of its analysts. The company’s first flirtation with an acquirer, ill-reputed Ladenburg Thalmmann, ended badly when Fulcrum employees protested with a “sick out” day. It’s now looking like most of Fulcrum’s research pros will be absorbed by research aggregator Soleil Securities, an independent research and stock-trading boutique. Paul Spillane (pictured), president of Soleil, said, “We’ve always had a lot of respect for the people of Fulcrum, and if there is an opportunity, I hope we can make something happen.” Meanwhile, Fulcrum, which was founded in 2001, will concentrate its efforts on the investment banking side of the equation.
Fulcrum Exits Research Business [Institutional Investor]
Fulcrumbles [NY Post]
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