L.F. Rothschild said it has withdrawn as...

L.F. Rothschild said it has withdrawn as a primary dealer, making it the second firm in less than a week to defect from the exclusive club of bond dealers that trade directly with the government. Rothschild said its departure, which will leave 44 primary dealers to trade with the Federal Reserve, was effective immediately. Primary dealerships are special rights granted by the Fed to deal directly with the government when it issues debt securities. The once-prestigious role has been losing its appeal as intense competition cuts profit margins.