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Boston Group Back in Business After Raising Needed Capital

March 22, 1997|From Bloomberg News

Los Angeles brokerage firm Boston Group resumed normal operations Friday after receiving a capital infusion.

The firm failed its minimum net capital requirement of $250,000 last week, forcing it to halt regular business. On Friday, the regulatory arm of the National Assn. of Securities Dealers said the firm is back in compliance.

Earlier this week, an investor group that included former Goldman, Sachs & Co. analyst Joseph Salvani agreed to buy an unspecified equity interest, and Connecticut investment firm Wexford Management agreed to provide capital in the form of subordinated debt.

Boston Group failed to meet its capital requirements after stocks of companies it had brought public--including six Southland firms--dropped sharply. The declines eroded the firm's capital because it held sizable inventories of those stocks.

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