Over the past decade, a tremendous amount of pressure has been laid on the shoulders of the small broker-dealers of the securities industry. Like the iconic Willy Loman in Arthur Miller’s Death of a Salesman, these small and/or independent brokerages are allotted a significantly shorter leash than they have been in years past......More
Times are great. The market is soaring. Stocks are generally doing well. And the woes of 2007 and 2008 are a faded memory. And, of course, all customers are singing the praises of their registered representatives – until the next crises....More
As financial advisors take over more and more of their clients’ needs, the case of best-selling author Patricia Cornwell’s $51 million verdict against Anchin, Block & Anchin presents a cautionary tale....More
In Stewart v. Kono (2012 Westlaw 4427096) we’re reminded of the often delicate balance needed when representing the fiduciary. In this case, John Stewart was trustee of his deceased brother’s living trust and executor of his estate....More
More Demonizing the Banking System?
So, now the government is back at it. Blaming the housing bubble on every institution but itself (too much liquidity and Clinton’s Community Reinvestment Act are to blame.
The scapegoat this week is Wells Fargo in the crosshairs. Here is a snippet from the WSJ:
“The U.S. government filed a civil lawsuit against Wells Fargo & Co., accusing the biggest U.S. mortgage lender of behaving recklessly in issuing federally backed home loans....More
Well, another theif buys the farm. I just don't know what gets into people. Why do people think --- not just in financial services, but in any field --- they can get away with cheating and theiving? Oh, yeah. It's called hubris.
Richard Roth, Esq., of The Roth Law Firm, opines, now that the dust has settled on the controversial decision in Rosenberg, which deemed Form U-5 statements immune from defamation litigation, the New York courts simply got it all wrong....More
Throughout the rise of the financial industry, there has been a justifiably strong desire on the part of individuals and broker-dealers to hold the SEC accountable for its regulating (or lack thereof) of the securities market....More
Since the August 2011 adoption of the Dodd-Frank Wall Street Reform and Consumer Protection (Dodd-Frank) Act, the barriers for employees of SEC-regulated corporations and financial institutions to report wrongdoing by their companies (known as whistleblowing) have been significantly lowered....More
According to the Florida Supreme Court, an attorney’s activities fall under ethical disclosure rules whenever he participates in a business transaction with a client, even if he’s not a principal (for example, buyer or seller) in the transaction....More
Considering investors have filed a class-action lawsuit against both Morgan Stanley and Facebook over the selective disclosure that occurred before the firm’s IPO, it is worth reading this great post by Josh Brown on his Reformed Broker blog about what kind of disclosure is legally required prior to an IPO....More
There’s little question about the newfound popularity of trust protectors, which they’re undoubtedly enjoying. And why not? They’re entitled to a fee for “services,” even when none are required, and it’s common practice to absolve them from any liability for acting or not acting, regardless of the circumstances....More
With litigation on the rise, fiduciaries and their advisors are striving to reduce or eliminate risk and understand how time-worn fiduciary principles may be applied in a world with volatile markets, changing trust and tax laws and a seemingly endless sea of lawyers looking for targets with deep pockets....More
In a scathingly-worded decision, a Financial Industry Regulatory Authority arbitration panel ruled Tuesday that Merrill must pay $10 million to two brokers, Meri Ramazio and Tamara Smolchek. The panel said Merrill fraudulently prevented the brokers from ......More
Repeat Offender Brian Raymond Callahan was a repeat offender, as is so often the case with white collar crime. In 2009, the Financial Regulatory Industry Authority barred him from associating with any FINRA member, so he went the investment adviser ......More
Notre Lame For many people “Rudy” conjures up the inspirational cinematic tear-jerker of the same name from 1993. Today “Rudy” is likely conjuring up tears for another reason. Daniel Ruettiger, the famed Notre Dame football player who inspired the ......More
Technology is a critical differentiator in today's digital age for running an efficient and effective practice. Those entrepreneurial financial advisors and wealth managers who are leveraging technology in their firms are creating better client experiences, improving cash flow, generating new revenue streams, and scaling their services....More
Shedding non-core activities can free advisors to focus on what’s really important; meeting with clients and engaging in other revenue generating activities. Outsourcing the investment management function of the practice is one way to do so. For those still skeptical—the proof is in the results....More