Another of the brokerage firms that sold plenty of the products that almost ended Securities America has folded, but this time management found a place for its reps to go.
Minnesota firm Workman Securities has reportedly shut down.
The firm's last SEC filing reveals that it earned a whopping $37,923 profit last year on revenue of barely $15 million -- $12 million of which went to its 100 reps in commissions.
Coming after last year's litigation-driven losses, the company's cash holdings had fallen to $286,000 and it faced up to $11 million in potential liabilities from selling bad investments from Medical Capital Corp. and Provident Asset Management.
At this point, apparently the possible cost of a settlement was still more than the company was worth to its two owners. So they shut down.
But at least in their case, they brokered a deal with Allied Beacon Partners to take their reps and make sure their transition was as smooth as possible.