NEW YORK — L. F. Rothschild & Co. Inc. said today it has withdrawn as a primary dealer, making it the second institution in less than a week to defect from the exclusive club of bond dealers that trade directly with the government.
Rothschild, a subsidiary of L. F. Rothschild Holdings Inc., said its departure, which will leave 44 primary dealers to trade with the Federal Reserve, is effective immediately.
Scope of Decision Told
Rothschild also said it will discontinue its U.S. government securities sales and trading activities except for trading in its own account.
Rothschild said that, while its capital exceeds the Federal Reserve's new requirements for primary dealers, the return on capital devoted to its government securities operations has been insufficient to warrant continuation of the business.