City Securities Corp.: changes come to Indiana's leading municipal-bond house.

• Author: Beck, Bill
• Position: Milestones

AT ONE TIME, Indianapolis-based City Securities Corp. derived literally all of its income from underwriting and distributing bond issues.

The Indiana General Assembly's passage of school consolidation legislation in 1958 created a huge demand for new public schools during the next 20 years. Coupled with the firm's growing business in the 1970s of organizing the syndicates that underwrote the massive residence-hall expansions at Indiana, Purdue, Ball State and Indiana State universities, City Securities developed a reputation during its middle years as Indiana's pre-eminent municipal-bond house.

Founded in 1924 as a successor to Miller and Co.--an Indianapolis-based municipal-bond investment banking firm that dated to 1907--City Securities Corp. emerged out of fine carnage of the Great Depression in the 1930s to dominate the sometimes arcane world of Hoosier municipal-bond financing. Under the inspired leadership of J. Dwight Peterson and Noble Biddinger, the firm dominated its field from the 1940s until fine early 1970s. From its office in fine art deco Circle Tower building in downtown Indianapolis, City Securities established a reputation as Indiana's go-to municipal-bond house.

But the company also explored other financial-services opportunities early in its history It launched its stock brokerage business shortly after the company's founding, and began selling insurance in 1933. John D. Peterson, the second generation of family leader ship, took City Securities to new heights in the 1970s and 1980s.

The stock market crash of October 1987, increasing competition in the financial-services marketplace, a slowdown in new school construction, and the bear market ushered in by 9/11 have created both challenge and opportunity for City Securities as the 21st century begins. Michael E. Bosway, named president of the company in 1999, began the process of change that is transforming City Securities' future.

"How much we've changed." Bosway, understands the corporate culture of City Securities perhaps as well as or better than any of the firm's nearly 150 employees, advisors and retirees. "We just did an update of the company's history," Bosway says. "And I was involved extensively this go-around. It really shows how much we've changed the past five or six years."

With an MBA from Ohio State and after a start at Arthur Andersen, Bosway began his career at City Securities in 1982. Five years later, management asked him to move to the firm's...