EF Hutton's Evolution and Revival

EF Hutton's history began in 1904 as a boutique brokerage firm, founded by Edward Hutton. The firm's early success was largely due to its focus on serving the needs of wealthy clients.

In the 1960s, EF Hutton's reputation as a trusted investment advisor grew, thanks in part to its charismatic salesmen, who often used clever marketing tactics to attract new clients. These salesmen were known as "hucksters", and they played a significant role in the firm's early success.

By the 1980s, EF Hutton had expanded its operations and was listed on the New York Stock Exchange. However, the firm's troubles began when it was revealed that some of its employees had been engaging in insider trading, which led to a significant decline in the firm's reputation and ultimately, its bankruptcy in 1990.

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E.F. Hutton & Co. was founded in San Francisco in 1904 by Edward Francis Hutton and his brother, Franklyn Laws Hutton.

The firm was one of the first brokerages to open offices in California, which was a significant milestone at the time.

In 1906, the San Francisco earthquake destroyed the company's offices, but the firm persevered and continued to grow.

Gerald M. Loeb, a famed Wall Street trader, joined the firm in 1924 and eventually rose to chairman, helping to expand the company's reach and influence.

The firm developed a nationwide retail brokerage network to market its debt and equity securities, catering to a wide range of customers.

Hutton also operated seasonal offices in Palm Beach, Florida, and Saratoga Springs, New York, to accommodate its customers during peak seasons.

In 1969, Morrie Cohen opened the company's first one-man office on Maui, marking a significant expansion into new markets.

Hutton led the firm until his death in 1962, after which Robert M. Fomon took over as Chief Executive Officer in 1970.

Carole Brookins was hired by the firm in 1972, making her one of the few women stockbrokers on the Chicago futures exchange floors at the time.

Under Fomon's leadership, the company retained its independence despite the challenges faced by many of its peers in the 1960s and 1970s.

The original E.F. Hutton & Co. eventually became the principal component of E.F. Hutton Group Inc., a holding company listed on the New York Stock Exchange.

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In 1985, E.F. Hutton & Company Inc. was charged with 2000 counts of wire and mail fraud in connection with a scheme similar to "check kiting" to fraudulently obtain $250 million.

The scheme was serious enough to warrant a suspension of trading in Hutton's stock, which reopened $3.75 lower at $29.25 per share.

A $2 million fine was imposed on the firm for the scheme, and an additional $750,000 fine was paid to reimburse the government for the investigation.

No Hutton employees were charged in the case, but there were U.S. House of Representative committee hearings into the matter.

In 1987, an internal probe revealed that brokers at an office in Providence, Rhode Island, laundered money for the Patriarca crime family.

The firm's management had tried to put Hutton up for sale as early as 1986, but it wasn't until the 1987 stock market crash that the company's financial struggles became apparent.

By the end of November 1987, Hutton had lost $76 million due to massive trading losses and margin calls that its customers couldn't meet.

The firm's commercial paper rating was cut from A-2 to A-3, resulting in a loss of $1.3 million in financing.

Hutton was now weeks or even days from collapse, but a merger with Shearson Lehman/American Express on December 3, 1987, saved the company.

The merged firm was named Shearson Lehman Hutton, Inc., and the Hutton brand was used until 1990 when American Express abandoned the name.

Dozens of Hutton brokers left the firm to join competitors after the merger, and the combined firm suffered dwindling business from individual investors.

The focus of the firm was shifted to large corporate transactions, which didn't appeal to individual investors.

In 1992, Shearson sold The Boston Company, an asset management group, to Mellon Financial for undisclosed terms.

The Boston Company had overreported its earnings by $30 million in December 1988.

In 1993, American Express sold its brokerage and asset management business to Primerica for $1 billion.

Primerica merged the business with Smith Barney to form Smith Barney Shearson, later shortened to Smith Barney.

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EF Hutton was put up for sale in 1988 by its board of directors, and Shearson Lehman/American Express made a bid for the company. Shearson reportedly floated a $50 per share offer for Hutton in 1986.

The sale was led by Robert Rittereiser, who joined the firm in 1985 from Merrill Lynch and became the new CEO after the sale. Rittereiser's team produced a simple-minded coloring book to explain the sale to Hutton employees, which reportedly insulted their intelligence.

A group of E.F. Hutton alumni bought the E.F. Hutton brand for an undisclosed amount in 2012, but their effort to launch a new financial advisory firm was abandoned in 2013.

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In 1988, the board of directors of Hutton put the company up for sale, a decision that would change the course of the firm's history.

The sale was approached by Shearson Lehman/American Express, which had made a failed bid for Hutton the previous year.

Shearson reportedly floated a $50 per share offer for Hutton in 1986, a move that would ultimately lead to the sale of the company.

Robert Rittereiser, who joined the firm in 1985 from Merrill Lynch, would replace Robert Foman as CEO after the sale.

Rittereiser's team produced a simple-minded coloring book to explain the sale to Hutton employees, a move that reportedly insulted the intelligence of the Hutton brokers.

The Hutton board was told by Rittereiser that the firm would make $74 million in the first nine months of 1987, but instead it made only $15 million.

The stock market crash of 1987 further impacted the firm, causing the stock to fall to $15 a share, down from $35 a share prior to the crash.

Once the stock traded under $20, Hutton became a takeover target, and talks of selling the firm began.

Hutton was a broker-dealer in stocks and bonds, with an investment banking operation that was also affected by the sale.

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The revival of the E.F. Hutton brand was a complex and multi-step process. A group of E.F. Hutton alumni bought the brand for an undisclosed amount after Citigroup was forced to sell assets due to the Subprime mortgage crisis.

In 2012, a new financial advisory firm under the name E.F. Hutton & Company was announced, but the effort was abandoned when Frank Campanale left to become chairman and chief executive of Lebenthal Wealth Advisors LLC.

Christopher Daniels, who started his career at EF Hutton's investment bank, re-launched the brand as EFH Group Inc. in 2014. Daniels had a strong background in structured finance and capital markets.

EFH Group went public in November 2014 via a reverse merger with OTC-traded Twentyfour/seven Ventures, Inc. and was renamed EF Hutton America, Inc. trading under the stock symbol HUTN.

The company relocated its headquarters to One Main Street in Springfield, Ohio in 2016 and changed its name to HUTN, Inc. in October 2017.

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EF Hutton was a prominent American brokerage firm that rose to fame in the 1970s and 1980s.

The firm was founded by Bernard Cutler and Edward Hutton in 1904.

Edward Hutton was a well-respected stockbroker and a member of the New York Stock Exchange.

Bernard Cutler was a shrewd businessman who played a crucial role in expanding the firm's operations.

EF Hutton's success was largely due to its ability to provide expert advice to its clients.

The firm's reputation was further enhanced by the charismatic and persuasive salesmen who worked for them.

One notable salesman was Richard Whitney, who was a member of the New York Stock Exchange and a prominent figure in the firm.

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