This article is about the defunct investment bank founded in 1899. For the UK-based investment bank founded in 1811, known as Rothschild, see N M Rothschild & Sons.
L.F. Rothschild (later known as L.F. Rothschild, Unterberg, Towbin) was a merchant and investment banking firm based in the United States and founded in 1899. The firm collapsed following the 1987 stock market crash.
L.F. Rothschild & Co. was founded in 1899 by Louis F. Rothschild (1869–1957), not related to the European Rothschild family.[1] Together with partner Leonard Hockstader, Rothschild took up the offices and business of Albert Loeb & Co. at 32 Broadway in New York City, New York.[2] The firm's primary business was sales and trading of fixed income securities. The firm also had an arbitrage group as well as retail brokerage and wealth management operations.[3]
Following its merger with C.E. Unterberg, Towbin in 1977, the firm was known as L.F. Rothschild, Unterberg, Towbin and was led primarily by Thomas I. Unterberg and A. Robert Towbin.[4] As of March 26, 1977, it moved to 55 Water Street, leasing the 45th and 46th floors. The firm was known for its merchant banking investments, particularly in high-technology companies. In the early 1980s, the firm emerged as the leading underwriter of initial public offerings, surpassing the elite investment banks (at the time, including Lehman Brothers, Goldman Sachs, and Morgan Stanley). Among the companies they took public were Intel, Cray Research, and biotechnology company Cetus Corporation.[5]
In 1986, just ten years after merging with L.F. Rothschild, Towbin and Unterberg left the firm to join Shearson Lehman.[6] The split was attributed to their opposition to plans to expand the firm's bond sales and trading operations. However, in the negotiations with outside firms related to that expansion and capital infusion, at least one particularly attractive offer required that Unterberg and Towbin step down from management positions or leave the firm. Hard feelings between senior management that resulted by considering that offer were believed to be the causal factor behind their departure by most insiders. Ultimately, the firm's stock trading exposure during the stock market crash in 1987 led directly to its demise.
Unterberg left Lehman four years later, in 1990, to form Unterberg Harris.[5]
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This article is about the defunct investment bank founded in 1899 For the UK based investment bank founded in 1811 known as Rothschild see N M Rothschild amp Sons L F Rothschild later known as L F Rothschild Unterberg Towbin was a merchant and investment banking firm based in the United States and founded in 1899 The firm collapsed following the 1987 stock market crash L F RothschildCompany typeDefunct acquiredIndustryFinancial servicesFounded1899FounderLouis F Rothschild 1869 1957 Defunct1988FateAcquired in 1988 following bankruptcy by Franklin Savings AssociationHeadquartersNew York CityProductsInvestment banking brokerage Contents 1 History 2 Notable alumni 3 See also 4 References 5 Further readingHistory editL F Rothschild amp Co was founded in 1899 by Louis F Rothschild 1869 1957 not related to the European Rothschild family 1 Together with partner Leonard Hockstader Rothschild took up the offices and business of Albert Loeb amp Co at 32 Broadway in New York City New York 2 The firm s primary business was sales and trading of fixed income securities The firm also had an arbitrage group as well as retail brokerage and wealth management operations 3 Following its merger with C E Unterberg Towbin in 1977 the firm was known as L F Rothschild Unterberg Towbin and was led primarily by Thomas I Unterberg and A Robert Towbin 4 As of March 26 1977 it moved to 55 Water Street leasing the 45th and 46th floors The firm was known for its merchant banking investments particularly in high technology companies In the early 1980s the firm emerged as the leading underwriter of initial public offerings surpassing the elite investment banks at the time including Lehman Brothers Goldman Sachs and Morgan Stanley Among the companies they took public were Intel Cray Research and biotechnology company Cetus Corporation 5 In 1986 just ten years after merging with L F Rothschild Towbin and Unterberg left the firm to join Shearson Lehman 6 The split was attributed to their opposition to plans to expand the firm s bond sales and trading operations However in the negotiations with outside firms related to that expansion and capital infusion at least one particularly attractive offer required that Unterberg and Towbin step down from management positions or leave the firm Hard feelings between senior management that resulted by considering that offer were believed to be the causal factor behind their departure by most insiders Ultimately the firm s stock trading exposure during the stock market crash in 1987 led directly to its demise Unterberg left Lehman four years later in 1990 to form Unterberg Harris 5 The firm suffered heavy losses in the 1987 stock market crash and was acquired by Kansas based Franklin Savings Association in February 1988 7 However even with new capital the firm s holding company L F Rothschild Holdings Inc filed for Chapter 11 bankruptcy protection in July 1989 8 By the end of 1989 the firm had gone from a peak of 2 200 employees to 45 9 Notable alumni editAmong the notable alumni of L F Rothschild are Thomas H Lee the private equity investor who founded Thomas H Lee Partners in 1974 10 John Angelo and Michael Gordon who left the firm in 1988 to found Angelo Gordon amp Company 11 Daniel Scotto former Director of Research joined the firm in 1982 currently President and CIO of Whitehall Financial Advisors LLC 12 Jordan Belfort founder of stock brokerage Stratton Oakmont and subject of the 2013 film The Wolf of Wall Street convicted of securities fraud among other felonies Jean Shafiroff philanthropist and socialite Alan B Slifka Investor philanthropist co founder of the Abraham Fund and founding chairman of the Big Apple CircusSee also editC E Unterberg TowbinReferences edit Davis John H 1994 The Guggenheims An America Epic SP Books p 82 ISBN 1561713511 Moody s Magazine Volume 9 Moody Corp 1910 Williamson John Peter The Investment Banking Handbook John Wiley and Sons 1988 Alexander Charles P Four Financial Genies Time magazine January 23 1984 a b McGeehan Patrick Private Sector Banker s Novel Late Career Move New York Times November 11 2001 Staff Shifts at L F Rothschild New York Times December 22 1986 Cole Robert J Savings Group to Get L F Rothschild New York Times February 23 1988 Bartlett Sarah Rothschild Holdings Files For Chapter 11 Protection New York Times July 1 1989 COMPANY NEWS Creditors Back Rothschild Associated Press December 29 1989 AMENDMENT 2 TO FORM 10 K www sec gov Retrieved June 7 2018 Fabrikant Geraldine November 2 1988 Business People 2 Officials at Rothschild Leaving to Start Firm New York Times Professionals Whitehall Financial Advisors Archived from the original on April 14 2008 Retrieved April 16 2008 Further reading editBelfort Jordan 2007 The Wolf of Wall Street New York Bantam Books ISBN 978 0 553 80546 8 Retrieved from https en wikipedia org w index php title L F Rothschild amp oldid 1181137856, wikipedia, wiki, book, books, library,
