GOOD: Wall Street Firms come and go!
BAD: Wall Street failure = failure on Main Street
UGLY: Who is Knight Capital, EF Hutton, Lehman Brothers, Bear Stearns and MF Global ?
BOTTOMLINE: Companies come and go! Just home your money is not in the one that goes!
And the Knight Capital debacle follows a long list of Wall Street failures. In the last few years, Lehman Brothers, Bear Stearns and MF Global have destroyed themselves. Before that, Drexel Burnham Lambert filed for bankruptcy in 1990, Barings in 1995, Long-Term Capital Management in 1998, Refco in 2005 and Amaranth Advisors in 2006. In the late 1980s and early 1990s, the savings and loan scandal resulted in a spate of bank liquidations. In the 1970s, there was the implosion of the Wall Street financial institution Goodbody & Company, and in the decade before, the failure of Ira Haupt & Company.
Happy Networking and Investing,