An irreverent Wall Street Blog
BrokeAndBroker.com Blog by Bill Singer WEEK IN REVIEW
July 2, 2017
Wall Street Whistleblower Johnny Burris Speaks Truth To Power http://www.brokeandbroker.com/3516/burris-whistleblower/
Johnny Burris is a former J.P. Morgan financial advisor who alleged that he was coerced by the bank to sell company-owned financial instruments. Burris felt uncomfortable pushing some in-house product on his customers because he found the attendant higher costs inappropriate and unwarranted. He declined to drink the corporate Kool-Aid. As he tells the story in the video presentation below, in response for trying to do what he thought was in his customer's best interests, he became a whistlebower, for which he asserts that he was fired and retaliated against.
Burris asserts that top executives were aware of what he characterizes as illegal violations of banking laws and OSHA laws against discrimination and retaliation. He also warns that whistleblowers may find themselves in the cross-hairs not only of prominent industry firms but also of the industry's regulators. His is an unflattering view about the self regulation of Wall Street, and he raises troubling questions about strings and who is pulling them. READ and WATCH http://www.brokeandbroker.com/3516/burris-whistleblower/
Rep Wins Expungement Of 11 Year Old Complaint At Defunct Brokerage Firm http://www.brokeandbroker.com/3515/expungement-finra-welborn/
In a recent FINRA expungement arbitration, a registered person challenged an 11-year-old customer complaint. In the ensuing years, the brokerage firm had gone out of business and many records were long-since destroyed or lost. Talk about an uphill battle! In the end, the registered rep prevailed and how she did it and why the arbitrator ruled in her favor are worthwhile lessons. READ http://www.brokeandbroker.com/3515/expungement-finra-welborn/
FINRA Arbitrators Can't Explain http://www.brokeandbroker.com/3514/bill-singer-finra-arbitration/
To most Wall Street observers, today's BrokeAndBroker.com Blog's featured FINRA arbitration is a ho-hum, garden-variety dispute between an employer and employee. What often makes the BrokeAndBroker.com Blog an edgy read, however, is the quirky viewpoint of its publisher Bill Singer, Esq. And Bill is in all his edgy glory today as he savages a mandatory intra-industry dispute. By way of a teaser, the former employee Claimant sought between $48,000 and $606,658; and the former employer Respondent filed a Counter-Claim seeking $72,083.52. How and why the panel of arbitrators awarded $8,000 to the Claimant is a mystery. Speaking of how and why, who said "I Can't Explain?" Yeah, that's right. What is? Not what, Who. READ http://www.brokeandbroker.com/3514/bill-singer-finra-arbitration/
SEC Settlement Cites Trading Ahead Of Research http://www.brokeandbroker.com/3513/sec-oip-wsc/
There's no crying in baseball and there shouldn't be any tears shed on Wall Street when it comes to regulation. Frankly, much of what passes for regulating the industry seems to be a cost-benefits analysis of how much you can get away with versus what you would finally agree to pay via settlement. It all looks like checkbook regulation, which tends to favor the too-big-to-fail and disproportionately crushes the small market participants.
In a recent SEC settlement, we have a quintessential small firm and its individual President cited for a number of violations involving trading involving non-public information. In fairness to the federal regulator, it sets forth what's pretty much an air-tight case. In fairness to the respondents, you likely did yourself a service by settling. For industry participants, the SEC's presentation of the case provides a superb opportunity to consider whether your own policies and procedures will stand up to similar scrutiny. READ http://www.brokeandbroker.com/3513/sec-oip-wsc/
An issue that had divided the federal circuit courts was when/whether a Section 11 claim could be tolled pending the determination of a class certification. The Supreme Court has just resolved that split in the circuits. FULL-TEXT Supreme Court Opinion online at BrokeAndBroker.com Blog with audio of argument and transcript of argument. http://www.brokeandbroker.com/3512/calpers-supreme-court/
FINRA Buries The Lede With FAS Rep Settlement http://www.brokeandbroker.com/3510/fas-finra-awc/