| April 23
April 23 Former executives of famed brokerage
E.F. Hutton & Co. are launching a boutique investment advisory
firm that revives the old name, hoping that memories of the firm
can attract brokers and customers two decades after Hutton faded
Before being swallowed up through mergers, E.F. Hutton once
had 19,000 employees and employed one of Wall Street's most
memorable advertising campaigns: "When E.F. Hutton talks, people
Now some former executives are building a new version of the
firm, as first reported in The Wall Street Journal. The new firm
will announce the hiring of financial advisers and other
executives over the next few weeks, said Frank Campanale, a
former E.F. Hutton and Smith Barney executive who will be chief
executive of the new Hutton.
Campanale, until recently a wealth management executive at
independent broker-dealer network First Allied Securities, said
he sees an opportunity to fill a void in the wealth management
"We're trying to create a great firm with great culture,
something E.F. Hutton had," he said in a brief interview. "We
have a clean slate."
Campanale declined to elaborate on his plans.
Campanale ran the consulting groups at Hutton and later at
Smith Barney, where he helped develop a number of successful
fee-based asset management programs now common across Wall
Street. Campanale left Smith Barney in 2004.
Several former executives and employees say the E.F. Hutton
name gives the new firm a leg up against other new wealth
"The chances of it succeeding as a boutique are good," said
George Ball, former E.F. Hutton president who co-heads Edelman
Financial Group. "It's a start-up with a better chance of
survival because of the lingering E.F. Hutton association."
The original E.F. Hutton was sold to Shearson Lehman
Brothers for about $1 billion in 1987 after the firm was caught
kiting checks - writing new checks to repay previous checks to
essentially get interest-free loans. Other issues, including
debt and 1987 stock market crash, humbled the firm and spurred
the firm's decision to sell.
The name faded as Hutton became part of Citigroup and
its Smith Barney brokerage, which became part of Morgan Stanley
Smith Barney through a 2009 deal with Morgan Stanley.
"There are names that still have some cache and certainly
E.F. Hutton is one of them," said Robert Rittereiser, a 27-year
Merrill Lynch veteran named chief executive of Hutton after the
check-kiting scandal. "In the end you have to be good at what
Rittereiser, at 73 a consultant with Guidepost Partners LLC,
said people want to identify with successful names. There are
also former employees still in the brokerage business who have
positive memories of the old Hutton.
Campanale said Christopher Daniels, a former Hutton
investment banker, is helping launch the firm, as is John Lohr,
former general counsel at Hutton's consulting group. Stanley
Hutton Rumbough, a grandson of the firm's original founder, is
It remains to be seen, though, if the right names can win
Campanale's group registered the Hutton brand name this
month, he said. The Hutton name and logo had been held by
Retriever Brands, a New Jersey firm that has a portfolio of