What Happened to E.F. Hutton?

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Greenbacks's picture
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Does any one besides me remember this company and what happened to them?
I remember there slogan ( When E.F. Hutton speaks people listen!)
 

troll's picture
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Greenbacks wrote:
Does any one besides me remember this company and what happened to them?
I remember there slogan ( When E.F. Hutton speaks people listen!)
 

 
Yes, someone besides you does. 

dude's picture
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E.F. Hutton was absorbed by what is now Smith Barney.

dude's picture
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Oops, I just realised that you guys know this already.  I mis-took the tone of the question. 

Soothsayer's picture
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SonnyClips wrote:Hey wasn't it... "When E.F. Hutton Talks People Listen." I remember that sh*t. They kept doing it to larger and larger groups of people. Started in a restaurant wound up at Yankee stadium or some sh*t. I think they ran out of people to listen. Don't forget John Houseman doing... "At Smith Barney we Don't Make Money We Earn It."
Actually, it was, "At Smith Barney we make money the old-fashioned way.....We EARNNNNN it."

compliancejerk's picture
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and didn't someone do a spoof on it
"At whomever it was we make money the old fashion way, we inherit it"

troll's picture
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compliancejerk wrote:
and didn't someone do a spoof on it
"At whomever it was we make money the old fashion way, we inherit it"

Robin Williams did a great take on it (and he was a freind of John Houseman). "At Smith Barney we make money the old fashioned way, we pimmmmip for it".

zacko's picture
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I though Lehman bought EF Hutton...had the bame shearson-lehman-hutton for a short time and now is lehman bros?  Is that correct?

csmelnix's picture
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I honestly thought it was Morgan Stanley and EF Hutton that hooked up.  Wasn't EF Hutton part of the Sears broker deal, where an actual broker was located in some of the Sears Dept. stores?

Duke#1's picture
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Csmelnix, that's Dean Witter you're thinking about (w/ MS).
Hutton was bought by Shearson/Lehman (then owned by American Express) in the mid 80's; became Shearson Lehman Hutton for a while until Hutton name was dropped.  Shearson evolved into Smith Barney. 

troll's picture
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dude wrote:E.F. Hutton was absorbed by what is now Smith Barney.
 
Correctimundo  

troll's picture
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Duke#1 wrote:
Csmelnix, that's Dean Witter you're thinking about (w/ MS).
Hutton was bought by Shearson/Lehman (then owned by American Express) in the mid 80's; became Shearson Lehman Hutton for a while until Hutton name was dropped.  Shearson evolved into Smith Barney. 

Generally that is correct.
However, I think AmEx sold Smith Barney to Primerica(the old American Can) and then later on spun off Lehman.

zacko's picture
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OK..here it is...
In 1975, the firm acquired Abraham & Co.. In 1977, Lehman Brothers and Kuhn, Loeb & Co. merged to form Lehman Brothers Kuhn Loeb & Co. In 1984, Lehman Brothers Kuhn Loeb & Co. acquired American Express and becameShearson Lehman/American Express. In 1988, Shearson Lehman and E.F. Hutton & Co. merged as Shearson Lehman Hutton Inc. In 1993, American Express sold Shearson Lehman Brothers Inc. to the Travelers Group which divested Lehman Brothers and the firm once again became an independent company. In 1994, the company offered public stock; Lehman Brothers Holding Inc. common stock commenced trading on New York & Pacific
Citigroup later aquired Travelers and Lehman bros was spun-off prior.  So, there you have it...
 
 

csmelnix's picture
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Thx on the corrections....I love this board; these things just keep going and going!!!!!!!

troll's picture
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zacko wrote:
OK..here it is...
In 1975, the firm acquired Abraham & Co.. In 1977, Lehman Brothers and Kuhn, Loeb & Co. merged to form Lehman Brothers Kuhn Loeb & Co. In 1984, Lehman Brothers Kuhn Loeb & Co. acquired American Express and becameShearson Lehman/American Express. In 1988, Shearson Lehman and E.F. Hutton & Co. merged as Shearson Lehman Hutton Inc. In 1993, American Express sold Shearson Lehman Brothers Inc. to the Travelers Group which divested Lehman Brothers and the firm once again became an independent company. In 1994, the company offered public stock; Lehman Brothers Holding Inc. common stock commenced trading on New York & Pacific
Citigroup later aquired Travelers and Lehman bros was spun-off prior.  So, there you have it...
 
 

"...And Ozias begat Joatham; and Joatham begat Achaz; and Achaz begat Ezekias; 1:10 And Ezekias begat Manasses; and Manasses begat Amon; and Amon begat Josias..."
 

Soothsayer's picture
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mikebutler222 wrote:zacko wrote:
OK..here it is...
In 1975, the firm acquired Abraham & Co.. In 1977, Lehman Brothers and Kuhn, Loeb & Co. merged to form Lehman Brothers Kuhn Loeb & Co. In 1984, Lehman Brothers Kuhn Loeb & Co. acquired American Express and becameShearson Lehman/American Express. In 1988, Shearson Lehman and E.F. Hutton & Co. merged as Shearson Lehman Hutton Inc. In 1993, American Express sold Shearson Lehman Brothers Inc. to the Travelers Group which divested Lehman Brothers and the firm once again became an independent company. In 1994, the company offered public stock; Lehman Brothers Holding Inc. common stock commenced trading on New York & Pacific
Citigroup later aquired Travelers and Lehman bros was spun-off prior.  So, there you have it...
 
 

"...And Ozias begat Joatham; and Joatham begat Achaz; and Achaz begat Ezekias; 1:10 And Ezekias begat Manasses; and Manasses begat Amon; and Amon begat Josias..."
.....and John Bachmann begat Doug Hill; and Doug Hill begat Jim Weddle.
Sorry, I just couldn't resist turning this into an Edward Jones thread!
 

exdrone's picture
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.....and John Bachmann begat Doug Hill; and Doug Hill begat Jim Weddle.
Sorry, I just couldn't resist turning this into an Edward Jones thread!

Sooth,
You rock.

troll's picture
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zacko wrote:
OK..here it is...
In 1975, the firm acquired Abraham & Co.. In 1977, Lehman Brothers and Kuhn, Loeb & Co. merged to form Lehman Brothers Kuhn Loeb & Co. In 1984, Lehman Brothers Kuhn Loeb & Co. acquired American Express and becameShearson Lehman/American Express. In 1988, Shearson Lehman and E.F. Hutton & Co. merged as Shearson Lehman Hutton Inc. In 1993, American Express sold Shearson Lehman Brothers Inc. to the Travelers Group which divested Lehman Brothers and the firm once again became an independent company. In 1994, the company offered public stock; Lehman Brothers Holding Inc. common stock commenced trading on New York & Pacific
Citigroup later aquired Travelers and Lehman bros was spun-off prior.  So, there you have it...
 
 

 
Not bad Zacko.  While you're at it, work in the background on where Smith Barney and Salomon Brothers fit into the story line!
By the way, I had dinner at Westport Plaza this week, and you crossed my mind.....;-)

Duke#1's picture
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zacko wrote:
OK..here it is...
In 1975, the firm acquired Abraham & Co.. In 1977, Lehman Brothers and Kuhn, Loeb & Co. merged to form Lehman Brothers Kuhn Loeb & Co. In 1984, Lehman Brothers Kuhn Loeb & Co. acquired American Express and becameShearson Lehman/American Express. In 1988, Shearson Lehman and E.F. Hutton & Co. merged as Shearson Lehman Hutton Inc. In 1993, American Express sold Shearson Lehman Brothers Inc. to the Travelers Group which divested Lehman Brothers and the firm once again became an independent company. In 1994, the company offered public stock; Lehman Brothers Holding Inc. common stock commenced trading on New York & Pacific
Citigroup later aquired Travelers and Lehman bros was spun-off prior.  So, there you have it...

Not to nitpick, Zacko, but Lehman didn't acquire AXP.  AXP bought Shearson Loeb Rhodes in 1981, then bought Lehman in 1984 (when it also bought IDS).  

wilson's picture
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Duke#1 wrote:zacko wrote:
OK..here it is...
In 1975, the firm acquired Abraham & Co.. In 1977, Lehman Brothers and Kuhn, Loeb & Co. merged to form Lehman Brothers Kuhn Loeb & Co. In 1984, Lehman Brothers Kuhn Loeb & Co. acquired American Express and becameShearson Lehman/American Express. In 1988, Shearson Lehman and E.F. Hutton & Co. merged as Shearson Lehman Hutton Inc. In 1993, American Express sold Shearson Lehman Brothers Inc. to the Travelers Group which divested Lehman Brothers and the firm once again became an independent company. In 1994, the company offered public stock; Lehman Brothers Holding Inc. common stock commenced trading on New York & Pacific
Citigroup later aquired Travelers and Lehman bros was spun-off prior.  So, there you have it...

Not to nitpick, Zacko, but Lehman didn't acquire AXP.  AXP bought Shearson Loeb Rhodes in 1981, then bought Lehman in 1984 (when it also bought IDS).  

Yup, I got to Lehman just after the merger. When Hutton was acquired, the "crown jewel" of Hutton was the asset management business, headed by Len Rheinhart (who later started Lockwood).
If you ever run into an ex-Hutton broker, ask them if (hypothetically) Hutton were to be resurrected, would they be willing to leave their current firm to rejoin them? I can nearly guarantee most would say yes in a heartbeat. Where many brokerage firms throw the term "entrepreneurial" around when describing how they run their business, Hutton really walked the talk.

Visigoth's picture
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Check kiting anyone????

commodities's picture
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wilson was right in his answer about former brokers leaving their jobs in a heartbeat to work back at a "resurected" EFH.  Any employee who worked there would go in an instant, including myself. Even though the company itself had major problems, the people who worked there had a special camaraderie that I have not in any firms since.

commodities's picture
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sorry guys- I thought I made the font smaller in my post. It looks postively awful!  Please forgive me.

dude's picture
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Please elaborate on the culture of EF Hutton and why it was so different.  Thanks.

mranonymous2u's picture
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They used Splendid in the corporate lemonade!
Emoticon
 
Mr. A

aldo63's picture
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EF hutton
shearson lehman hutton
smith barney shearson
solomon smith barney
smith barney
Citi's Barney legg(mason)

dude's picture
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mranonymous2u wrote:
They used Splendid in the corporate lemonade!
Emoticon
 
Mr. A

Damn, my spleen hurts after that one....sooooo sooooo funny.

My Inner Child's picture
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We've got about half a dozen Hutton guys in our office. They all LOVED it there.

Starka's picture
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That really is an interesting question.  Why was the culture at Hutton so enticing?  Any of the former E.F. people here care to weigh in?  And just why hasn't any other company tried to emulate it?
I remember a "60 Minutes" story from years ago...Sullivan Company, a manufacturer of industrial air compressors and other construction equiptment, was failing.  The company went on a cost-cutting and increased production pogrom and things got progressively worse.  Enter new management who proceeded to focus on their people, their most valuable resource, and they apparently "walked the walk" to borrow a phrase.  The result?  Complete and almost immediate business turnaround.
One would wonder if this is nothing more than an isolated example or a system that can work.  If so, why doesn't anyone seem to follow suit.

troll's picture
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Many former EF Hutton managers worked at the "old" pre-UBS PaineWebber, including my branch manager.I guess the two things that stick in my mind were that he-and others like him-were very pragmatic and very broker-friendly.  Pragmatic in the sense that when you wanted to try a new marketing idea, or needed them to go to bat for you with a big client, or against compliance, they were willing to do whatever they could.  If you were running into red tape with an operational problem, they would make the call for you to push things to whomever could get it fixed.  There was even a special "managers hotline" for operational problems.  (Then again, at LPL I find that we have so few operational screwups that there isn't much of a need for a hotline like that....blatant plug yes I know, but honest.)They took the attitude that the brokers were the ones moving the firm forward.  Most of the ex-EFHutton managers were ex-brokers themselves, and they seemed to have remembered well how challenging it was to be in production.UBS changed a lot.  Many of the old crew were pushed out or retired.  Or-being that they wanted to keep their jobs, went along with the changes in the new corporate culture.  VERY tight cost controls.  Oppressive bureaucratic compliance.  Investment bankers were supreme.

mranonymous2u's picture
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"The company went on a cost-cutting and increased production pogrom and things got progressively worse."
Did you mean to say "pogrom"? if so my hats off to you as wordsmithie of the week!
Mr. A

mranonymous2u's picture
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But lets us not forget that Hutton was technically out of business when they were bought by Sandy Weil wannabe Peter Cohen.
The financial disaster that was E.F.Hutton lead to payout cuts for Shearson brokers. extreme writedowns of "goodwill". And was really the middle of the beginning of the end for Shearson.
Shearson never should have bought Hutton and Hutton would not show their books to Shearson.
Yeah, I'd love to work at a firm that played fast and loose with the books and the operations of the company to keep their employees happy. But not if they're going to die as a result of the first correction of a bull market! 
Please!
Mr. A

troll's picture
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mranonymous2u wrote:"The company went on a cost-cutting and increased production pogrom and things got progressively worse."
Did you mean to say "pogrom"? if so my hats off to you as wordsmithie of the week!
Mr. ANo I didn't mean to, but I know the word.  It would have been an appropriate choice!

mranonymous2u's picture
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In that case, when I use it, and I will, I'm taking credit for it!
I just can't bring myself to putting a smiley emoticon here. They seem so girlie!
Mr.A

troll's picture
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mranonymous2u wrote:In that case, when I use it, and I will, I'm taking credit for it!
I just can't bring myself to putting a smiley emoticon here. They seem so girlie!
Mr.AOnly a real man who is secure in his image can handle using the girlie icons....

mranonymous2u's picture
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Fair enough.
But then the only reason to use emoticons in the first place is to make sure one didn't another's feelings. Real men expect other real men to know they're just bustin'chops...
Mr. A

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mranonymous2u wrote:
Fair enough.
But then the only reason to use emoticons in the first place is to make sure one didn't another's feelings. Real men expect other real men to know they're just bustin'chops...
Mr. A

I disagree with your assesment.  Emoticons (I believe) are intended to clarify the intent and message of a post, since the majority of the message we recieve from communication is usually non-verbal when actually speaking with real people.
Any perception of them being 'girlie' is reflective of an insecurity or prejudice in the individual not based in fact but in conjecture.  Your post also presupposes that the other party can understand your intent and content accurately without being able to see you...I say this is impossible without assumption and therefore is null as a method to discover the truth of your message.

Starka's picture
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mranonymous2u wrote: "The company went on a cost-cutting and
increased production pogrom and things got progressively worse."
Did you mean to say "pogrom"? if so my hats off to you as wordsmithie of
the week!
Mr. A

Yes, I did mean "pogrom". That's the only word that seems to fit when the
bean-counters get a great idea and management embraces it.

mranonymous2u's picture
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I thought it was Starka that said Pogrom. It also made more sense if the name Starka is from the yiddish, as in "Enforcer with extreme prejudice"
My cap is doffed.
Mr. A

Starka's picture
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I didn't know of the yiddish meaning. Actually, I chose the screen name for
another reason. It is the Russian word for "old". (It's also the name of the
best vodka that I've ever tasted! Alas, we can't get it here in the States.)

Starka's picture
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Oh, and I think I like your interpretation better, mranon!

ymh_ymh_ymh's picture
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Speaking of former EFH types, you guys/gals following the rise and fall of Ross Mandell?
 

Starka's picture
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ymh_ymh_ymh wrote: Speaking of former EFH types, you guys/gals
following the rise and fall of Ross Mandell?
 

Actually, I'm more interested in the rise and fall (hopefully sooner rather
than later) of Eliot Spitzer.

ymh_ymh_ymh's picture
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Stay tuned, Eliot might have to explain that $10K in PAC money he got from his childhood pal, Ross!

rook4123's picture
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Those commericals were great. Fantastic marketing.

Starka's picture
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rook4123 wrote: Those commericals were great. Fantastic marketing.

What commercials, Rook? Admittedly I don't watch much TV, but I always
like to see new marketing ideas!

troll's picture
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Starka wrote: rook4123 wrote: Those commericals were great. Fantastic marketing.

What commercials, Rook? Admittedly I don't watch much TV, but I always
like to see new marketing ideas! I think he's talking about the old "When E.F. Hutton talks....people listen." campaigns.

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