Brookstreet Securities Corporation, an independent broker-dealer in Irvine, Calif., is near death after its bets—on margin—on mortgage backed securities went south. According to published reports, Brookstreet’s capital fell from $16 million to several million below zero after National Financial Services, the firm’s clearing house, demanded payment for the securities bought on margin.
Brookstreet brokers are scrambling for new positions (many are landing at Wexford's new independent arm) and are concerned about customer complaints and requlatory inquiries arising from the collapse of Brookstreet.
See Also, Subprime Surprises at Forbes
