Prudential Capital & Investment Services LLC history

The October 1987 panic on the market cost Prudential $1 billion in paper value and marked at least a temporary end to runaway leveraged buyouts (LBOs) and massive mergers and acquisitions.

In 1989, a difficult year for the Pru, Bache lost $48 million.

In November 1990, Prudential-Bache announced that it was cutting back on its investment banking operation by about two thirds, having made the decision to reorganize the firm to focus on its strengths in the retail brokerage business.

1991 Ball resigns from Pru Bache as losses total more than $250 million amid lawsuits relating to selling real estate limited partnerships.

In response to the negative publicity, Prudential retreated behind a shield of secrecy, but with probes into the limited partnerships by state securities regulators expanding, the company accepted various settlements, including public censure in 1992.

In 1993 profits reached nearly $800 million.

When Elizabeth Krupnick arrived at Prudential Insurance Company of America in June 1994 to take over as chief communications officer, she inherited advertising that she called "mediocre at best." She also inherited one of the most identifiable icons in advertising: the rock.

Lost business due to flagging consumer confidence cost these companies even more money than the price of the settlements; they fell short of their projected sales of $198.57 billion by approximately $72.46 billion in 1995.

Albo, Amy. "Open Door Policy (How Commercials are Produced at Fallon McElligott)." Shoot, December 13, 1996.

The settlement, approved by a New Jersey district court judge in 1997, led to an eventual payment in excess of $2 billion.

Prudential ranked as the largest life insurer in terms of assets in the United States in 1998.

Also in 1999, Prudential began rapid global expansion; early that year, it opened a mutual fund company with Mitsui Trust & Banking Co. in Japan, acquired a license to open an office in Poland, and launched new insurance companies in Argentina and the Philippines.

In 2000, it gained full ownership of Prudential-Mitsui Trust Investments Co., its joint venture with Mitsui Trust & Banking.

Prudential becomes a public company on December 13, the first NY Stock Exchange IPO after the September 11, 2001 terrorist attack.

In 2002, it acquired a 50 percent stake in Oppenheim Funds Trust GmbH and Oppenheim Investment Management International.

The company stood as the third-largest provider of adviser-sold variable annuity products in the United States upon completion of the purchase. It also pledged to cut nearly $600 million in expenses and achieve 12 percent return on equity (ROE)--a measure used to analyze operating performance--by 2005.

The company's assets in June 2006 were $568 billion.

As a result of Prudential's strong capital position, the company does not seek funds from the Troubled Asset Relief (TARP) in the aftermath of the 2007 financial crisis.

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