E.F. Hutton

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E.F. Hutton
Founded 1904
Headquarters San Francisco, CA

E.F. Hutton was a U.S.-based brokerage firm founded in 1904 by Edward Francis Hutton and his brother Franklyn Laws Hutton. Their firm became one of the most respected U.S. financial firms and was at one time the second largest brokerage firm in the U.S.

E.F. Hutton would merge with Shearson Lehman/American Express in 1988. At the time of its sale, Hutton had 6500 brokers.[1][2]

The merger was precipitated by Hutton pleading guilty to charges it overcharged bank customers for fees. The "check kiting" scandal hurt Hutton's reputation, but the stock market crash of 1987 also played a factor.

Hutton was known for its marketing campaign, "When E.F. Hutton talks, people listen."[3][4]

History

E.F. Hutton was founded in 1904 in San Francisco, CA and would see its offices destroyed in 1906 by an earthquake. Hutton was one of the first brokerage firms in California and would grow into a nationwide firm. It also opened season offices in summer locations to cater to customers by their summer homes in Saratoga Springs, New York or their winter homes in Palm Beach, Florida.

Hutton was later led by Gerald M. Loeb, who joined the firm in New York in 1924.

In 2012, the firm was re-established under new management under the leadership of Frank Campanale.[5]

Check Kiting Scandal

In 1985, E.F. Hutton & Company Inc. was charged with 2000 counts of wire and mail fraud in connection with a scheme similar to "check kiting" to fraudulently obtain $250 million.[6] Trading in Hutton's stock would be suspended due to the charges, and the stock would reopen $3.75 lower at $29, 25 per share. The firm would be fined $2 million for the scheme.

Products and Services

Key People

References

  1. E.F. Hutton, Losing Two-Year Struggle, Is Looking for Buyer. New York Times.
  2. Shearson Reported To Acquire Hutton In a $1 Billion Deal. New York Times.
  3. When E.F. Hutton talks, people listen. vintage tv commercial. Youtube.
  4. The Leadership Law of E. F. Hutton. SISLeadership.com.
  5. E.F. Hutton is Back, But Will Anyone Listen?. WealthManagement.org.
  6. E.F. Hutton Guilty in Bank Fraud : Fined $2 Million for Scheme Similar to ‘Check Kiting’. LA Times.