EF Hutton

EF Hutton was a prominent American brokerage firm, known for its extensive network of offices and its influence in the financial industry. Founded in 1904 by Edward F. Hutton and Clarence Dillon as Hutton, Dillon & Co., it later became E.F. Hutton & Co.

The firm experienced significant growth in the mid-20th century, becoming one of the largest and most recognizable investment houses in the United States. It offered a wide range of financial services, including stock brokerage, investment banking, and financial planning.

EF Hutton was particularly well-known for its advertising campaigns. One of the most famous was a television commercial featuring the tagline, "When EF Hutton talks, people listen." This slogan reinforced the perception of the firm as a source of valuable and influential financial advice.

However, in the mid-1980s, EF Hutton became embroiled in a major check-kiting scandal. The firm pleaded guilty to 2,000 counts of mail and wire fraud for illegally overdrafting accounts to gain access to funds before they were actually deposited. This scandal severely damaged the firm's reputation and financial stability.

Despite attempts to recover, EF Hutton never fully regained its former standing. In 1987, the firm was acquired by Shearson Lehman Brothers, which was later acquired by Primerica. The EF Hutton name eventually disappeared from the financial landscape. While its physical presence and brand are no longer active, EF Hutton remains a significant case study in business ethics and the impact of corporate misconduct.