Specialist Unit 949 Is No More

Last Friday I got a call at work from an AMEX broker I used to trade with. I used to stand next to him when I traded Yahoo options, and we became friendly. As it happened, I went to elementary school with his brother, and thus we had a few mutual friends. Anyway, in the process of trying to sell me on some shady transaction that he was involved with, he mentioned my old firm. "You know, the rumor around here is that Charlton book is closing down." Now, I've known for a while that they've been having some problems, and that there was a good possibility of the book closing up at year-end, so I didn't think much of it.

Then Monday, while I was bored, I surfed over to the AMEX website. Scrolling through the floor bulletins, I clicked on a Relocations Of Options list.

Oh shit.

Somebody's book went out of business. There must be 75 options there that were all transferred to LaBranche. Wait. I know those options. I know that book.

Oh shit.

Charlton's done.

Just like that, my old firm closed up shop Friday afternoon. After the initial feelings of relief that I got out before the axe fell, I realized that most of my friends down there probably have no job left. I tried calling Jeff, but no answer. I emailed Yogi. He knew a little more than me - and it sounded ugly.

Finally, Jeff called me last night while I was out. We spoke for an hour, and he gave me the details. It was very ugly. Basically, the 3 senior partners decided to just pull the plug. Most of the junior guys were given jobs trading upstairs, at $30k per year draw. That's it. Jeff and Arnold were told they were not being offered positions. Between the two of them, they probably accounted for 35 years of loyalty and easily $60 million in profit. Apparently, that meant little to the other 3. It just goes to show you - loyalty to your job is overrated. Look out for yourself, since nobody's going to look out for you.