F. Hutton Group
Inc., a Delaware holding company whose stock was publicly owned and
traded on the New York Stock Exchange. So if you bought Hutton stock,
you were buying shares of Group, but if you bought stock through a
Hutton office, it was Hutton & Co. that was your broker.
3: Paragraph 9 Hutton Group also owned some other corporations,
including E. F. Hutton Life Insurance Company and some investment
managers and funds. The chairman of Hutton Group's board of directors
was Robert Fomon, and the president of Hutton & Co. was Scott Pierce,
who was then-VP George Bush's brother-in-law.
3: Paragraph 10 Much of the money in this country is in pension
plans, most of them now "qualified plans" under the federal pension laws
known as "ERISA." That money isn't tied up, out of circulation, though
-- it's invested in everything from real estate and mutual funds to race
horses and precious gems. Managing those investments and doing the
paperwork for both pay-ins and pay-outs is also big business, because
the fees for management and administration are usually a percentage of
the amount in the fund, and even a small percent of a billion dollars is
a lot of money.
3: Paragraph 11 By the early 1980s Hutton, like the other financial
institutions, derived a significant portion of its income from pension
funds, either as fees for managing the investments by deciding what
stocks or bonds to buy or as commissions for being the broker that
actually traded the securities.
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