FBR is closing the prime brokerage unit it launched in August 2009, The New York Times is reporting.
The business apparently never took off amid immense competition in the mini-prime space. The proliferation of mini-primes occurred in the wake of the financial crisis, when major prime brokers dropped their smallest clients, leaving a gap in the market. But analysts including Aite Groups Denise Valentine, speaking to GCTV have said too many mini-prime brokers entered the market, and a gradual shake-out will leave only the strongest players.