Posts belonging to Category Merrill Lynch

Merrill Lynch Settles Wage and Hour Class Actions


Merrill Lynch has agreed to pay $12 million to settle wage and hour class action lawsuits filed by employees seeking compensation for overtime.  The period in dispute is between 2010 and 2012.  The employees are referred to as “client associates,” whose job is to support the financial advisers by serving clients and developing new business […]

Today’s ‘Alternative Investments’ Resemble ‘Limited Partnerships’ of the Past


Wall Street’s recent promotion of alternative investments should warrant serious concern among investors. It serves as an unpleasant example of history repeating itself. In the mid-1980s, Wall Street firms became enamored with limited partnerships (a form of alternative investment) that invested in so-called hard assets, paid the firms high commissions and fees, were illiquid and […]

Will Alternative Investments Fuel the Next Financial Debacle?


Investors are being sold more and more alternative investments and large broker-dealers are ramping up to supply that demand, according to the Wall Street Journal (“Alternatives Get a Boost”). The trouble is that most investors do not fully understand these products and their brokerage firm advisers do not fairly explain the risks and problems associated […]

District Court Confirms $10,250,000 Arbitration Award Against Merrill Lynch


The U.S. District Court for the Southern District of Florida confirmed an award in favor of two former financial advisers and against Merrill Lynch in the amount of $10,250,000. Merrill Lynch had petitioned the district court to vacate the award arguing, in essence, that the record of the arbitration proceeding demonstrated bias on the part […]

Arbitrators Claim That FINRA ‘Blacklisted’ Them for Awarding Large Damages to Investors


Bloomberg reports that the Financial Industry Regulatory Authority (FINRA) summarily removed from its roster three arbitrators who served together on a case in which the investor was awarded more than $500,000 and has refused to even discuss the matter with the arbitrators, despite the absence of any impropriety. (“Wall Street’s Captive Arbitrators Strike Again,” by […]

Regulator Sanctions Merrill Lynch for Overcharging Customers


The Financial Industry Regulatory Authority (FINRA) has fined Merrill Lynch $2.8 million for overcharging nearly 95,000 customers with fees totaling more than $32 million. The overcharges occurred from April 2003 to December 2011. The fine also included failing to provide timely trade confirmations. (“Merrill Lynch Fined for Overcharging Customers,” Wall Street Journal).

Legal Mistake Sheds Light on Unscrupulous Wall Street Practices


Last week lawyers representing Goldman Sachs and Bank of America/Merrill Lynch inadvertently released embarrassing documents detailing unethical trading practices and complete disregard for the interests of smaller clients (See “Accidentally Released ? and Incredibly Embarrassing ? Documents Show How Goldman et al Engaged in ‘Naked Short Selling,’” Matt Taibbi, Rolling Stone and “Goldman, Merrill E-Mails […]

Wall Street Firms Apparently Planning Massive Job Cuts


Wall Street banks could soon cut as many as 21,000 jobs in New York alone, say Wall Street consultants and recruiters. Worldwide cuts could be even larger (“Large layoffs loom on Wall Street,” Stephen Gandel, CNN Money). While the stock market is up this year, and many smaller investment banks have been hiring, and the […]

Wall Street Bonus Wars Get Even Crazier


The Wall Street Journal and others are reporting that Merrill Lynch has upped its recruiting package for top-40 percent advisers by offering an upfront cash bonus of 150 percent of the fees and commissions they generate from clients. In addition, they are eligible to receive back-end awards, including 25 percent of production at their prior […]

Why is Trust in Wall Street Banks Declining?


As Wall Street continues to question why its business is declining, a recent Financial Industry Regulatory Authority (FINRA) arbitration case provides part of the answer. The arbitration panel ordered Bank of America Merrill Lynch (Merrill Lynch) to pay $1.38 million to an investor who lost money in a complex structured product composed of pooled loans […]