Show Goodbody Comes Close The recent announcement by Merrill Lynch Pierce Fenner and Smith Inc and the New York Stock Exchange Exchange Exchange Ex Ex- Ex- Ex change that they would act jointly to forestall insolvency of one of the nations nation's largest brokerage houses houses- houses Goodbody and is the latest indication indication indication indi indi- cation of how close the national national national na na- na- na investment industry has been skirting financial di disaster disaster disaster di- di recently MERRILL LYNCH agreed to Goodbody with about and to eventually acquire control of the firm firmand firmand firmand and the New York Stock Exchange Exchange Exchange Ex Ex- Ex- Ex change agreed to indemnify Merrill Lynch for up to in liabilities which could arise from the largest merger in Wall Street history Goodbody and Co is the country's fifth largest brokerage brokerage brokerage broker broker- age firm and had it failed a crisis in conference in the nations nation's whole financial community community community com com- with severe repercussions repercussions repercussions reper reper- might well have re re- ORDERLY functioning of the nations nation's capital markets was thus preserved at the thelast thelast thelast the moment Securities last and Exchange Commission having given Goodbody what amounted amount to a n ultimatum just before the merger was announced to raise more capital capital cap cap- ital or be suspended from the exchange change The most serious aspe aspect t of the crisis was that some Goodbody investors might not have been protected protected pro pro- had the firm failed Th The Wall Street rescue fund which was increased to some months back is thought to have been already entirely committed committed committed com com- in an effort to protect protect pro pro- protect investors in some some ten other investment firms which have failed THE TilE narrowly averted Goodbody Goodbody Goodbody Good- Good body crisis makes it more than ever apparent that Congress Congress Congress Con Con- gress should without further delay enact legislation setting up federal insurance protecting protect protect- ing the American investor even if a slight charge or tax must be added to all transactions to provide that protection so vital to investor confidence and the future of the free enterprise system |