• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Friday, August 12, 2022
No Result
View All Result
CALIFORNIA BUSINESS JOURNAL
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
CALIFORNIA BUSINESS JOURNAL
feat

The Foundation of the Finance Industry

Finance 500, an independent broker-dealer in Irvine, California and one of the oldest private firms in Orange County, has built an impeccable reputation on the bedrock of the industry’s most-reliable products: CDs

by Susan Belknapp, Senior Writer, California Business Journal
A A
Share on FacebookShare on Twitter

In this age of inventive investments and wildly diversified portfolios, the classic, safe financial products don’t always get the buzz, though they are still largely the foundation of the industry.

This is particularly true for the average consumer. l

Retirement-investment accounts have experienced many roller-coaster phases over the past decades so those nearing retirement may have portfolios that have taken a beating. Or, because those nearing retirement age are at the tail end of the boomer generation, they may not have nearly the retirement reserves generations before had.

A “safe” investment that pays interest dividends sounds like an ideal option and the old stalwart products – such as a certificate of deposit or CD – are among the most proven and reliable as they have been around for decades and are insured by the FDIC.

Enter to the equation Finance 500, a broker-dealer in Irvine, California, that’s one of the oldest private firms in Orange County.

Finance 500 CEO Bryan Bennett anchored by Fred Murrieta (left) and Jaemin Ragsdale (right).
Finance 500 CEO Bryan Bennett anchored by Fred Murrieta (left) and Jaemin Ragsdale (right).

“We are one of the only private broker-dealer in the region, and we’ve been here since 1982,” says Bryan Bennett, Finance 500 CEO. “Though there are others, they are mostly branches of huge New York City firms. I believe it’s a testament to our consistency that we’re still around after nearly 40 years.”

Finance 500 was founded by Lance Hicks, who nurtured his firm into a trusted brand during its first 20 years. The CD underwriting division was added in 1996 and Bennett joined the firm two years later. The other partners, Jaemin Ragsdale, joined in 1997 and Fred Murrieta followed in 2000. Soon, it became the “flagship product for the company.”

Since then, the firm has established itself as one of the leaders in this niche, consistently ranking among the top firms nationwide in total underwriting volume. It has also been around the longest and has a significant share of the market.

“It wasn’t easy; we grew this firm by cold calling,” Bennett says. “There are about 5,500 banks, and we’d call each bank every three months. We scoured the country and never gave up. Slowly but surely, banks signed us up. And during that period, there was a lot of education about what broker deposits were and how they worked. It took time to get all those banks signed up.  Once you have the product, it then takes a while to get all the investors and brokerage firms to embrace the sale of the CDs.”

In 2015, the company’s founder decided to retire after 37 years in the industry and Bennett, Ragsdale and Murrieta were ready to take the reins and purchase the company and bring it to the next level.

ADVERTISEMENT

The plan was to focus tightly on the products they were expert in, beginning with CD underwriting.

“CDs are our core product,” Bennett says. “It’s what we’re in love with. The transition of ownership took about six months with regulators. Of course, they needed to make sure the people who were taking over the company knew what they were doing and the board of directors knew how to run a brokerage firm.”

Bennett and his team were thoroughly vetted and the application went through.

The way banks, brokerage firms and broker-dealers interact, it’s easy to lose sight of the fact that CDs are a retail product.

“The bulk of the buyers are individuals,” Bennett says. “When we underwrite a brokered deposit for a bank, not only do we sell the CDs to our internal customers, we also offer the CD issue to all the broker-dealers in the country and they offer it to their clients. Although institutions are big buyers of CDs, typically CDs are bought by people on a fixed income. As you know, they’re the safest investments out there because they are FDIC insured.”

The vast majority are purchased by individuals who can purchase a CD in increments as little as $1,000. The product has been extremely successful for the firm. You don’t usually hear financial success stories that took place in 2008, but ironically, that was Finance 500’s biggest year to date. It underwrote around $22 billion that year due to market conditions. An average year is about $7 billion.

Brokered CDs are only sold through a registered brokerage firm. This program allows a person or institution to buy a wide variety of bank names, all insured for up to $250,000, through one account. Interest on CDs are typically paid monthly and all interest payments are paid into one account as well. It’s easy for purchasers because they can buy as many CDs as they wish, so long as they have less than $250,000 in each bank name. If they get close to that total with one bank, they purchase any others under a different bank name.

When you work with a brokerage firm, you don’t have to search the financial pages to find the best CD rates. You just go to your broker and it’s all done for you. Even if you use a discount broker, you can still set up your account and do the searches yourself to find the best CDs and act as your own representative. Though there are some provisions for death, a CD is expected to be held until it reaches its maturity date. Unlike a traditional CD held directly with a bank where there are early withdrawal options that come with penalties, there is no early withdrawal with a brokered CD. Instead if you do need to get out of it, you can sell it like you would with any stock or bond but the price you receive depends on the current market conditions.

“The selling itself is easy, though,” Bennett says. “There is a huge secondary market for them.”

For the issuing banks that work with Finance 500, brokered deposits have become a valued asset for raising funds due to the programs many benefits. Brokered deposits, which are CDs brokered through the Depository Trust Company (DTC), are important products because they help small to mid-size banks compete with large banks and help infuse money into smaller communities through the brokered CD system.

“Brokered deposits allow banks to acquire funding from financial sources around the country, which enables them to make loans within their local community,” Bennett says. “This helps banks save on overhead – marketing, payroll and administrative costs. They would need to pay those expenses if they were soliciting funds locally or through a network of branches. Brokered deposits are also often less expensive than borrowing from the Federal Home Loan Bank and are almost always less than many on-line CD listing services.”

There is no early withdrawal so the banks never have to worry about a “run on the bank.” Also, the banks don’t need to open/monitor accounts.

“It’s all done by the broker,” Bennett says. “And it’s all packaged into one simple two-page CD and it makes it possible for smaller banks to compete with larger banks. It facilitates the transfer of funds that might be in a savings-rich area to an area that needs money and has some unmet credit needs so it’s a balancing product.”

Finance 500 has built its reputation on the bedrock of some of the industry’s most-reliable products. Says Bennett: “We’ve thrived in this niche for almost four decades by providing specialized service, a commitment to customers and cultivating partnerships with financial institutions nationwide.”

Copyright © 2019 California Business Journal. All Rights Reserved.

Finance 500
Finance 500
Finance 500
Finance 500
Tags: banksbest independent broker-dealer orange county californiabrokerBrokered CDsBryan BennettCaliforniaCDsCEOeducationfinanceFinance 500focusfundingFundsindependent broker-dealerinvestmentinvestmentsinvestorsIrvineloanloanslocalmarketingNew YorkOrange Countypayrollregistered brokerage firmreliable financial productsretirementsafe investmentsavingssecondary marketstoriestrust
ADVERTISEMENT
Susan Belknapp, Senior Writer, California Business Journal

Susan Belknapp, Senior Writer, California Business Journal

Susan Belknapp is a Writer, Editor and Corporate Communications expert with 15 years of professional writing experience across a wide variety of disciplines, including monthly print and digital magazines, social media, marketing and brand development. A graduate of University of Southern California with a degree in Fine Arts and Filmic Writing, Susan was Editor of OC Metro Magazine, which became part of the Orange County Register. Susan is also the Founder of Chonubusu Toffee, an online/direct-sale English toffee company specializing in custom orders, events, personalized labeling and dangerously delicious product prepared with the finest ingredients.

Related Posts

Plan Your Retirement
6 Tips to Help You Plan Your Retirement
Kevin Richards, KNR Consulting
Stock market jitters, a decelerated global economy and lingering questions of how long the pandemic will persist worldwide has heightened investor concerns.
cool money image
5 Steps to Financial Security
advertisement
1REALTOUR-SAN DIEGO-WEB DESIGN

Commercial Relationship Manager 3, Wells Fargo Bank, N.A., Los Angeles, California:

Represent the bank in developing and maintaining client relationships within middle market and mid-corporate banking.

Position requires a Bachelor’s degree in Business Administration, Finance, or related field and 3 years of experience. Requires up to 20% travel.

To apply, send resume to recruiter_inbox@wellsfargo.com and reference Requisition # 000329 in the subject line.

Facebook Twitter LinkedIn LinkedIn Instagram
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • Gavel, scales of justice and law books

    Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    0 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0
  • New Study: California’s 10 Universities That Produce the Most CEOs

    0 shares
    Share 0 Tweet 0
  • How to Start a Telecommunication Business: A Step-By-Step Guide

    0 shares
    Share 0 Tweet 0
  • Best Crypto Faucets You Can Try In 2021 and 2022

    0 shares
    Share 0 Tweet 0
  • The Only Way

    0 shares
    Share 0 Tweet 0

Latest Articles

Are Crypto Casinos Allowed in the USA?

Are Crypto Casinos Allowed in the USA?

UAE Agrees To New Procedures Audit Process

UAE Agrees To New Procedures Audit Process

New DEIJI Photo Shoot in Morro d' Alba Region in Italy

New DEIJI Photo Shoot in Morro d’ Alba Region in Italy

The Importance of Cultural Competence in Service-Based Businesses

The Importance of Cultural Competence in Service-Based Businesses

A Checklist To Hiring A Top Personal Injury Attorney

A Checklist To Hiring A Top Personal Injury Attorney

BioLargo’s Breakthrough PFAS Removal Technology

BioLargo’s Breakthrough PFAS Removal Technology Offers Hope for Clean Water Across the U.S.

Femnized seeds for cannabis. Photo credit: Ed Rosenthal

What is a feminized seed?

The Importance of Photographic Documentation on Construction Sites

The Importance of Photographic Documentation on Construction Sites

24 Applications of Linear Actuators in Your Home

24 Applications of Linear Actuators in Your Home

CBD Edibles: Top 9 Online Brand Picks to Choose From in 2022

CBD Edibles: Top 9 Online Brand Picks to Choose From in 2022

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR