Customer Loan Earns Stockbroker A Fine And Suspension


Wall Street may be the place where trillions of dollars exchange hands, but it's not the place where a registered person should simply ask a customer for the loan of a few bucks. Which is not to say that a stockbroker can't borrow money from a customer; but it is to say that the transaction is subject to a whole host of in-house broker-dealer procedures and a detailed checklist of Do's and Don'ts from the industry's regulator.  Today's BrokeAndBroker Blog examines what happens when a stockbroker borrows from a customer but doesn't follow the rules.For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority (“FINRA”), without admitting or denying the findings, prior to a regulatory hearing, and without a...
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