Reuters: “Brookstreet Securities Corp. on Thursday said it `may be forced to close’ after heavy markdowns in collateralized mortgage obligations, according to a letter the firm sent to investors this week.`Disaster, the firm may be forced to close,’ Brookstreet told its investors in an e-mail dated June 20 that was obtained by Reuters.”

“Brookstreet Securities is a full-service, national network of investment professionals dedicated to serving the needs of sophisticated investors. Our offices are around the corner or down the street. We are nearby to serve our Clients more economically. And we’re here to stay, with time-tested investment professionals who offer their Clients the opportunity to look them straight in the eye when making recommendations about their financial future.”

“Accounts are carried by National Financial Services LLC (”NFS”), a Fidelity Investments® company, Member NYSE/SIPC.”

In other news, Bear Stearns is withdrawing the Everquest IPO. But KKR announced that it will follow Blackstone down the IPO path. The private equity guys are heading for the hills. It has been a great run where massive leverage has created massive profits. Now they want the public to take over for the ride downhill. Note that the first out of the gate was Fortress and their IPO is now broken (trading well below the offering price).

Merrill appears to be having second thoughts about the forced sale of securities from the Bear Stearns funds after receiving “pitiful” prices for some of the riskier tranches of debt. Lehman, on the other hand, has changed its mind and is offering $400 million for auction. Barclays is apparently owed $1.2 billion. Bear Stearns is reported to be considering putting in $3.2 billion to repay the creditors and avoid a sale of the collateral. The beat goes on.