To anyone with a pulse and half a brain, this should come as no surprise. Jesup & Lamont Securities Corp., the poorly-run broker-dealer that swallowed up other broker-dealers, has filed for bankruptcy protection under Chapter 11. Using Chapter 11, the firm could reorganize and emerge from the other side. Frankly, it should convert to Chapter 7 and be euthanized.
There are enough broker-dealers on this earth. There are certainly plenty with the questionable reputation of Jesup & Lamont. Much of that has to do with the firm’s former management, most of whom have lost their jobs. It’s unfortunate that they’ve lost their jobs, but if they had done their jobs in the first place, like controlling the firm’s general counsel, perhaps they wouldn’t have ended up on FINRA‘s radar screen.
But all that is behind Jesup now. The firm will go through bankruptcy and, perhaps, end up being owned by the very people who hold judgments and awards against it. Wouldn’t that be ironic?
That’s the view of one lawyer from Jupiter, Palm Beach County, Florida. I’m Marc S. Dobin.