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A NYC veteran A storied New York financial institution, Gruntal & Co., was founded in 1880 with a single office on Broadway. The securities broker survived the 1929 stock market crash, expanded to 11 offices and went public in 1983, and established offices throughout the U.S. after being purchased by a Swiss-based insurance company in 1987. From success to scandal But Gruntal's story of success turned into a tale of greed and back-office wheeling and dealing in 1994, when the company announced that it had discovered an embezzlement scheme by three senior officials. In a 10-year period, the former officials bilked customers and the company out of about $14 million. Gruntal admitted to lapses in regulatory oversight. In 1995, former chairman and CEO Howard Silverman stepped down; he was rumored to have been pushed out. The next year, the company agreed to $6.2 million in fines, and set aside an additional $5.5 million to cover future claims. Cleaning up the mess The company was restructured in 1997 as a limited liability company and sold to a management group led by current CEO Robert Rittereiser. Despite its recent troubles, Gruntal is still a financial powerhouse, with $195 million in capital and $2.9 billion in assets. In April 1999, Gruntal announced that it was going to join forces with Florida-based A.F. Best Securities. But in June 1999, scandal resurfaced as the SEC sued two former senior managers, contending they diverted $11 million from customer accounts.
Resumes and cover letters should be sent to the company's main office in New York. But as with most Wall Street companies, the best way to land a job with Gruntal is to go through a college or business school career center in order to get a contact at the company. Names and biographies of top managers at the company are posted at the company's web site, located at www.gruntal.com.
"Chaos due to transition" "The culture is traditional Wall Street but with a definite touch of chaos due to transition," one employee said about Gruntal. Not only has the company suffered instability from the management overhaul that followed the embezzlement scandal, but the new management has in the past two years attempted to change the company's fee structure from transaction based-billing to asset-based billing. In part because Gruntal is a "very old, traditional" firm, the transitions have been "traumatic." Window of opportunity? With regard to the "traditional" atmosphere at Gruntal, one employee described the company as "culturally challenged" and "aware of its need to update its environment." On the flip side, the transitions and changing environment at Gruntal may offer excellent opportunities for women and minorities. "This can be a very good opportunity for a strong, ambitious individual who is willing to address resistance," one employee says.
Robert Getzewich Human Resources
Bear Stearns;Goldman Sachs;Merrill Lynch More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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