Today Securities America is arguing for what could be its life as it tries to reduce the $400 million it owes former clients who were sold bad private placements to a somewhat more manageable $21 million.
If the federal judge agrees to let the once-mighty brokerage firm settle all the outstanding claims against it by paying a token $21 million, then Securities America has a decent shot at the future.
But since the firm only has $2 million in cash to work with, even getting 95% of its obligations erased may not save it from having to ask perennial "distant parent" Ameriprise for help.
Reps are reportedly already on the move. Great story here.