Crush of arbitration cases from financial crisis eases
July 18, 2013
Reuters
Suzanne Barlyn
The surge of securities arbitration cases provoked by the worst financial crisis since the Great Depression is coming to an end. Cases by investors seeking to recover losses tied to the 2007-2008 crisis are down to a trickle, lawyers say. Thousands have now wound their way through the Financial Industry Regulatory Authority’s (FINRA) arbitration system […]
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Exclusive: FINRA beefs up policing of arbitrators
June 21, 2013
Reuters
Suzanne Barlyn
Wall Street’s industry-funded watchdog said it was beefing up oversight of its 6,500 securities arbitrators after one of them was criminally indicted and suspended from the practice of law but failed to properly disclose those legal run-ins. The Financial Industry Regulatory Authority’s new policy comes after Reuters asked questions about the background of Demetrio Timban, […]
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Ex-J.P. Morgan broker: Firm pushed house funds
June 11, 2013
InvestmentNews
Dan Jamieson
A former J.P. Morgan broker has filed an arbitration claim alleging that the bank’s securities unit encouraged sales of proprietary funds by withholding commissions from brokers on trades of outside funds. The claim, filed last month with the Financial Industry Regulatory Authority Inc. by Bryant Tchan against J.P. Morgan Securities LLC, said that an internal review system […]
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Despite Protests, You're Still Bound by Arbitration
June 7, 2013
Money Magazine
Lisa Gibbs
GOT A BEEF WITH YOUR BROKER? You’ll have to keep waiting for your day in court. In April, state securities regulators and members of Congress urged the SEC to end Wall Street’s practice of forcing customers to resolve disputes through nonjudicial binding arbitration rather than by a lawsuit. Riling them up was a ruling in […]
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Citigroup Ordered to Pay Investors $1 Million Related to Auction Rate Securities
May 21, 2013
Dow Jones Business News
Corrie Driebusch
An arbitration panel has ordered Citigroup Global Markets Inc. to pay more than $1 million to two Texas corporations that claimed the brokerage kept them in auction rate securities when it knew the market was in trouble. Texas PGI and Paragon Reserve accused the subsidiary of Citigroup Inc. of breach of fiduciary duty, among other […]
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