Bankruptcy for Jesup and Lamont Imminent

Bankruptcy

Due to the economic downturn, many smaller brokerages are suffering from the pangs of bankruptcy. With the increase in foreclosures and bankruptcies for less stable companies, it seems that even Jesup and Lamont are not immune to the economic effects.

Jesup & Lamont Inc. is a small brokerage firm that was first founded in 1877. The resulting bankruptcy was filed on Friday in Manhattan. The results of the bankruptcy filing revealed a state of $24.6 million in debts, along with a further $41.2 million in assets. The largest creditor to which debts were owing was found to be the Internal Revenue Service.

Initially, there was a problem with trying to meet net capital requirements for the company. However, as a result of various factors, the main source of revenue was lost, resulting in the need for the business to be brought out.

The offices and reps of the failed brokerage were picked up by Anderson Strudwick Inc, a small firm based in Richmond, Va. This was the second time that Anderson Strudwick had picked up failing offices from failing brokerages, and the result was the takeover of nine new offices, as well as thirty-seven reps and advisers.