Read Larry Connors' blog – Short Term Trading Strategies
Today, the buildings that housed Brooke Corp. and its long list of subsidiaries is a harsh reminder of just how quickly a good story can go bad.
Brooke, the creation of founder Rob Orr, had been skyrocketing, adding insurance agents to its system across the nation.
But when Wall Street bankers started calling in loans, the whole deal collapsed.
While Brooke was officially based in Overland Park, its roots were in Phillipsburg.
And when the world came crashing down on Brooke, Phillipsburg took it hard, losing about 150 jobs. Brooke might not have been the largest employer in the city, but it was high on the list.
Problems for Brooke started in early October, soon after Bank of New York Mellon filed a lawsuit in federal court in Kansas City, Kan.
That's when Albert Riederer, a Kansas City-area attorney was appointed as a special master by a federal judge to help sort out differences between the banks and Brooke.
But layoffs soon followed. In the first round, nearly 40 employees were let go.
As agents started seeking releases from Brooke, however, and crisis deepened, additional layoffs were made.
There was a glimmer of hope when Terry Nelson, a banker and farmer from the Norton area, partnered with a southwest Kansas insurance agent and offered to purchase Brooke Insurance, the flagship of the corporation.
But soon, Brooke Corp. and Brooke Capital Corp. filed for Chapter 11 bankruptcy protection.
Then Nelson and his partner withdrew the offer to purchase Brooke Insurance.
Riederer was named trustee of the failing company and virtually all of the employees for Brooke in both Phillipsburg and Overland Park were laid off.
Brooke Corp. listed assets of $512.9 million and liabilities of $447.4 million. Brooke Capital Corp. listed assets of $106.2 million and total debts of $111.7 million.
The bankruptcy petition did not include Generations Bank, a $130 million thrift that was told by federal regulators to either find a merger partner or sell the bank by Dec. 15.
In addition to the financial troubles facing Brooke Corp., the Kansas Insurance Department acknowledged that it has been working with the FBI in investigating Brooke's rapid fall, including its inability to account for all of the premiums it had been paid.
To see more of The Hays Daily News or to subscribe to the newspaper, go to http://www.hdnews.net. Copyright (c) 2008, The Hays Daily News, Kan. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
