Archives Securities Case Briefs: Outsiders as RICO conspirators Brouwer vs. Raffensperger, Hughes & Co. Brouwer v. Raffensperger, Hughes & Co., 199 F.3d 961 (7th Cir., 1/13/00): This case concerns the limitations under the federal RICO statute on liability of an underwriter and a law firm that assisted in note financings […]
Analysis
Refusal to Grant Adjournment
Third Time is not a charm Whale Securities Co., L.P. v. Godfrey, No. 565 (App. Div., 1Dept., 4/4/00): When SAC summarized the decision below, 10 SAC 9(16), we set out the facts in detail and posed the question: “How would you decide?” The question at hand, whether the Arbitrators engaged […]
Utah Court Upholds Award for In House Counsel’s Legal Time.
Attorney Fee Award For In-House Counsel Upheld SOFTSOLUTIONS, INC. V. BRIGHAM YOUNG UNIVERSITY, No. 981481 (Utah Sup. Ct., 5/19/00) Arbitral awards of attorney fees relating to time spent by in-house counsel are appropriate, but should be based on a cost-plus rate, rather than a market-rate formula. The primary issues on […]
Broad Arbitration Agreement Covers All Accounts by Owner
White v. Salomon Smith Barney, Inc., 2001 Cal. App. LEXIS 2844 (Cal. App., 1Dist., 11/30/01) A broad arbitration provision covering one account of a client may be construed to cover disputes arising in other accounts. The Whites opened ten brokerage accounts with SSB and subsequently brought suit against SSB with […]
Solomon Smith Barney Reps Lose CAP Request
Archives Whose Money Is It Anyway? Solly Smith Barney Reps Lose CAP Request By Rick Weinberg Several former Salomon Smith Barney brokers seeking the authorization to start a national class action suit against the firm’s Capital Accumulation Plan (CAP) had their request rejected by a federal judge in Boston, according […]
Merrill’s Gorman on Client Ownership, Priorities, Broker Pay
Who Owns the client…the brokerage firm or the broker? October 11, 2001 Merrill Lynch retail chief James Gorman says the numbers answer that question quite clearly. “The experience is that when brokers leave they take 65% of their book,” Gorman told RR at a gathering of reporters in the firm’s […]
Make Mandatory Arbitration Unenforceable
Commentary from T. Sheridan O’Keefe I have something in common with Stephen Sawtelle — a former broker from Waddell & Reed who was just awarded almost $28 million from an NASD arbitration panel (see the front page story in The Wall Street Journal, Aug. 29, 2001). You see, we both […]
Analyst Disclosure Issue Would Snag Brokers
New NASD Proposal will require more disclosures by retail brokers. The war on analysts is now threatening brokers. In proposing heightened disclosures from analysts, the NASDR has included retail brokers as well. The July proposal, NASD Notice to Members 01-45, broadens disclosure obligations for public appearances by analysts and brokers […]
Analyst Disclosure Issues
Analyst Disclosure Issue Would Snag Brokers New NASD Proposal will require more disclosures by retail brokers. The war on analysts is now threatening brokers. In proposing heightened disclosures from analysts, the NASDR has included retail brokers as well. The July proposal, NASD Notice to Members 01-45, broadens disclosure obligations for […]
Web Aggregators Under Scrunity
Registration and Regulation Considered By John M. Baker, Esq. Web aggregation is among the most recent financial services developments. Web aggregators collect an individual’s financial account information from a variety of web sites and enable the individual to view and manage it all at a single site. Current estimates are […]
