The 12 Most Spectacular Financial Services Failures of All Time
Founded in 1904, EF Hutton had grown into one of the largest brokerages by the 1980s, with 19,000 employees. In 1985, an overdraft scandal led the firm to plead guilty to 2,000 counts of mail and wire fraud. Already faced with massive legal bills, the 1987 stock-market crash led the firm to agree to a sale to Shearson Lehman American Express for about $1 billion. A group of former E.F. Hutton alumni resurrected the brokerage in April 2012.