Rothschild, Thrift Firm to Merge

NEW YORK — L. F. Rothschild Holdings Inc., a Wall Street broker reduced by the October crash to a shadow of its former self, said today it will merge with Franklin Savings Corp., a cash-rich Kansas thrift.

The mid-sized brokerage house, no relation to the European banking dynasty, became another casualty of the 1987 market collapse that has also claimed E. F. Hutton Group Inc. Franklin Savings, based in Ottawa, Kan., is a leading U.S. savings and loan association with assets of $9.05 billion and subsidiaries in Kansas City, Mo., and Houston. Rothschild said it had signed a letter of intent to merge with Stern Brothers & Co., a wholly owned subsidiary of Franklin Financial Services, for an undisclosed amount.