A generation ago, in one of the brokerage industry's most enduring ads, a hush falls over a room when an investor begins to describe to a friend what his E.F. Hutton broker has told him.
Now comes E-Trade Group, a leading electronic trading firm, with a new ad that turns the old Hutton message on its head. When a smartly dressed woman dining with her friend is asked about her broker's recommendations, the patrons at nearby tables are naturally all ears. But the woman replies confidently, "I don't have a broker."
As electronic trading proliferates, you might easily get the idea that the rest of the full-service retail brokerage industry will go the way of E.F. Hutton.
But as our cover story points out, retail brokerage firms from Legg- Mason to Merrill Lynch have been growing briskly. The new competition is only causing brokers to offer better financial advice to customers. The result: a profession that is more sophisticated and intellectually rewarding than it was a generation ago.
The same can be said for professionals who manage risk for a living.
In "The Rewards of Risk Management," writer Bill Stoneman tells us that banks, insurance companies, investment houses, and other financial institutions are beefing up staffs that identify and quantify risks.
Institutions are seeking, for example, a better handle on how a change in interest rates will affect asset and liability valuations or the likelihood of defaults among candidates for pre-approved credit card offers.
In the process, status and salary levels are rising rapidly.
But not all financial executives see rising salaries and job status as the ultimate goal in life. In "Can You Do Good While Doing Well?," writer Sarah Gribetz Stern introduces you to some executives who have found ways to derive a deeper sense of personal satisfaction from their careers.
I'd like to hear your comments about Turning Points. Please call (212- 803-8416) or e-mail me at john.kimelman tfn.com. Until then, enjoy the read.
John Kimelman
Editor
