This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

KBW Posts Loss, Shakes up Management

NEW YORK ( TheStreet) -- KBW (KBW), a niche investment bank focused on the financial services industry, posted a third quarter loss and announced a shakeup of top management, in the latest sign of weakness in the securities industry.

John Duffy, who had led the firm for more than a decade, will step down from the top job while staying on as vice chairman of the firm. He will be replaced by Tom Michaud, with Andrew Senchak taking over as Chairman of the Board.

KBW lost 51 cents per share in the third quarter, following a loss of 14 cents in the second quarter and an 11 cent gain in the third quarter of 2010.

"Our third quarter results were disappointing and were directly impacted by the significant decline in bank and financial stocks during the period. This share price movement led to realized and unrealized losses in our firm investments, trading and market making activities," said Michaud.

Duffy has been going through a messy divorce proceeding. One of Duffy's sons, Christopher, was one of 67 KBW employees who died during the terrorist attacks of Sept. 11, 2011.

Earnings have been disappointing across the board for securities firms, with Goldman Sachs (GS - Get Report) posting a loss of $393 million, and Morgan Stanley (MS - Get Report) and Bank of America (BAC - Get Report) relying on an accounting gain and one-off items to boost their results. Investment banking and trading results were also underwhelming at JPMorgan Chase (JPM - Get Report) and Citigroup (C - Get Report).

-- Written by Dan Freed in New York.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
KBW $0.00 0.00%
BAC $17.47 0.00%
C $54.18 -0.18%
GS $188.67 -0.27%
JPM $66.78 -0.15%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs