Ameriprise Has Had Enough of Securities America
It appears that Ameriprise is planning to unload its independent broker dealer unit, Securities America, according to an article in Investment News and the company’s first quarter earnings report. This announcement comes on the heels of an announcement April 15, 2011 claiming that a settlement had finally been reached with investors over the sale of private placements from Medical Capital Holdings and Provident Royalties that went bust.
While the article points out that many feel such an announcement is premature since the final settlement is yet to be approved, there seems to be speculation that there may be something else hiding in the closet for Securities America that Ameriprise is concerned about. Others have said that Ameriprise now wants to focus on its own business and reputation, now that it has contributed large sums of money to get rid of the Med Cap/Provident Royalty mess.
Only time will tell who is willing to step up to the plate for this beleaguered independent broker dealer.