Economic Meltdown Creates New Independence For Brokers

Video Mark Goldwasser, Chairman and CEO of National Securities Corporation, explains how the recent U.S. government bailout is just the beginning of a major paradigm shift on Wall Street. The new financial landscape that eventually emerges is one that could see the independent brokerage model rival the dominance of investment banks and major brokerage houses. (02:07)   Click screen to begin playback     Video/Audio requires the free QuickTime plugin. Download it here.

Newswise — The recent collapse of several major financial institutions—A.I.G., Bear Stearns, Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, Wachovia, and Washington Mutual—has left the world’s financial markets reeling, with no one knowing when the dust will settle.

“Last week’s U.S. government bailout is just the beginning of a major paradigm shift on Wall Street,” says Mark Goldwasser, Chairman and CEO of National Securities Corporation, the third-fastest growing independent broker-dealer in the United States. “The new financial landscape that eventually emerges is one that could see the independent brokerage model rival the dominance of investment banks and major brokerage houses.”

The independent contractor model grew out of the insurance business as large insurance companies realized they could broaden distribution through independent salesmen. In the mid-90s, insurance companies began allowing agents to conduct securities brokerage under their corporate umbrellas. Wall Street was quick to follow: over the past ten years, the independent contractor model has outpaced employee brokerage as many financial investment firms have limited the brokers’ freedom to operate.

“Most local independent broker-dealers are small enough to give clients the individualized, hands-on attention that they deserve, while also having the resources necessary to provide products and services that are competitive with the very largest firms,” says Mr. Goldwasser. “These shops are traditionally run by a handful of risk-averse partners who shy away from investing in products they could not understand or value. In the wake of some dark days on Wall Street—with the collapse and/or consolidation of several venerable big shops, increased regulatory pressure, and rising market volatility—look for the independent investment bank model to rise from the ashes.”

For those covering this news, National Securities Corporation makes available company Chairman and CEO Mark Goldwasser, to discuss a variety of topics including:

• Why does the independent brokerage model represent the future of investing?
• What are some of the investor advantages of working with independent broker-dealers?
• How might a shift away from brokerage house commissions toward fees based on assets impact investors?
• Is it easier for the government to regulate smaller, independent-brokerage houses than investment banks and major brokerage houses?
• In which financial products, if any, do independent broker-dealers specialize?
• When, if ever, are government bailouts of private financial institutions necessary in order to help stabilize the nation’s economy?
• Have we hit the floor on the financial repercussions stemming from the housing mortgage crisis?
• What opportunities exist in the current marketplace for investors?

Expert Biography – Mark Goldwasser, Chairman and CEO of National Securities Corporation
Mr. Goldwasser comes from a rich background having worked in managerial and executive positions at several of Wall Street’s largest firms. Mr. Goldwasser was the Managing Director and Co-head of Global High Yield Sales at ING Barings, the Managing Director of High Yield Sales at Schroders & Co., Vice President of Institutional High Yield Sales at Lazard Freres & Co., and the Associate Director of Institutional Convertible Sales and Institutional High Yield Sales at Bear Stearns & Co., Inc. “Goldie,” as he is known in the industry, joined National Securities in mid-2000 and has shown impeccable leadership by bringing the company through the difficult period of September 11, 2001, and its aftermath. With extensive experience in international financial markets, "Goldie" has the balance and vision necessary to lead National Securities. Additionally, National Securities has an in-depth team of key management that consist of well experienced executives and expert department heads to compliment its vision.

About National Securities Corporation
National Securities Corporation is an international full service independent brokerage firm with a diverse base of retail and institutional clients. National Securities was founded in 1947 in Seattle, Washington with the goal of providing a full suite of financial products and services to its registered representatives and clients. National Securities and its subsidiaries are headquartered in New York City and Seattle and have a multitude of domestic and international offices that provide a broad range of securities brokerage, financial planning, and investment services, as well as corporate finance and investment banking services to corporations and businesses.

National Securities’ reps are primarily independent contractors who operate their business with freedom and flexibility in advising their clients. This Independent platform that the company provides to the brokers allows them to better serve their clients and themselves.

National Securities has clearing relationships with National Financial Services LLC, Member NYSE/SIPC, a Fidelity Investments ® company, and Penson Financial Services. National Financial is a premier clearing firm and provides National Securities, its registered representatives and their clients with first class financial products and services. Penson Financial provides a secondary clearing arrangement that specializes in global clearing. Visit www.nationalsecurities.com to learn more.