I Think I Am In Trouble
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[quote=P G D M]
[quote=Mike Damone]What he did was wrong and stupid, but do you think the client would have the same reaction if his 2,000 shares were UP $3.00?[/quote]
That is exactly right. That is why I do not think he will want to hang me.
I have been thinking of asking him to hold the stock if I give him the difference between what it is when he gets back and what he payed for it. Then if it is sold for more than he payed for it he could split the profit with me and I might be able to get a lot of my money back.
Does that make sense?
[/quote]
See, P G D M is NN jerking chains. Sick. Really, really sick.
Nasty Put Easy reminds me of the creepy guy in “Saw” sitting at his computer…“I want to play a game…”
Just tell your client you were practicing putting in our first stock trade. Made a mistake and placed into the wrong account. LOL
[quote=P G D M]
Hi, I have been reading this stuff for a long time and find it to be very informative.
I am in my first year at UBS and I made a mistake a couple of weeks ago.
I have a client who has been in Florida for a month. About two weeks ago I heard something about a stock that I thought was really good news so I bought 2,000 shares in his account without talking to him.
Well the stock went down about $3 per share since then and I am worried that when he gets home on Thursday he is going to notice it on his statement and will be mad.
Do any of you have experience with something like this. How can I make him understand that I only had his best interest in mind and that I am sorry that he is losing right now.
I am pretty sure that he would have bought it if I had talked to him about it before I bought it for him, but he was in Florida.
Would it be a good idea to try to explain that if he sold it he would get some writeoffs which would help offset gains on other trades he has made.
He is 68 years old and is a retired veternarian. His wife is blind, but it is not her account.
Thank you for your advise.
[/quote]
How much was the commission?
Mark the ticket “unsolicited” and enter in your notes that the client called the order in and refused to listen to your advice that you felt that the stock was going to fall in price and that he should not buy it at that price.
OK dirk wait until the NASD gets you in an arb case and says 99% of your production is in 1 product how do you explain yourself I’d love to watch you sweat!
[quote=bankrep1]OK dirk wait until the NASD gets you in an arb case and says 99% of your production is in 1 product how do you explain yourself I'd love to watch you sweat![/quote]
I'll make sure you get an invitation. Bring your mom, too. She LOVES to see me sweat.
Guys and Gals:
This has to be a joke. UBS has a policy instituted several years ago which specifically says a broker cannot solicit any orders (and I assume even trade in a discretionary account) on securities which are not covered by their research group. If a client hears about a "hot" one and wants to place a trade in that security, the brokers are supposed to get written documentation this was an unsolicited trade to cover their rear ends and the firms, too.
It's gotta be a joke ladies and gents. If it's not a joke, let's hope the rookie's BOM or compliance officer knows what a daily trading blotter is and already took the appropriate actions.
Yes, this is definitely a joke. Why all the replies?
But this a true story from back in (around) 1998: rookie broker has a client with 3000 shares of an internet portal stock. Stock is at about 19; client gives the order to sell the stock at 21 Friday morning. Stock closes at around 20. Orders are considered "day" unless specified otherwise. On Tuesday the stock hits 21 and the broker just goes in and sells the stock at 21. Two days later, an analyst comes out and says this particular company is going to be the next AOL. Stock soars to over 80 (in two days). Client calls broker and asks what the heck is going on with this stock. Rookie broker says "don't worry about it as you no longer own it." Client gets steamed and says he only wanted it sold last Friday if it hit 21. Day-order only. Demands to speak to the mgr. and wants to bust the trade. Manager does just that and the rookie broker is on the hook for approx. 175k. Quit the next day. True story.
[quote=ymh_ymh_ymh]
Guys and Gals:
This has to be a joke. UBS has a policy instituted several years ago which specifically says a broker cannot solicit any orders (and I assume even trade in a discretionary account) on securities which are not covered by their research group. If a client hears about a "hot" one and wants to place a trade in that security, the brokers are supposed to get written documentation this was an unsolicited trade to cover their rear ends and the firms, too.
It's gotta be a joke ladies and gents. If it's not a joke, let's hope the rookie's BOM or compliance officer knows what a daily trading blotter is and already took the appropriate actions.
[/quote]
We do not have to get a letter from the client every time they buy something in their account that is not covered by the research department. We only have to get those letters if we disagree with the trade and think it is a bad idea.
I did not think it was a bad idea, but I did mark the ticket unsolicited.
What you do not seem to understand is that I am going to pay for the difference between what the stock was bought for and what it is now worth so that the client does not lose money.
He is a nice man and I am sure he will not care. He can sell the stock and have the loss for his tax form and have the cash too.
I will not write a check, I will give him cash. I withdrew the money from our savings account and have it in an envelope in my car.
I would have sold the stock already so that I would know how much I had to give him but I think it is going to be closer to what it was bought for. Plus I think he might hold on to it if I pay the difference in cash and if it goes up some more let me have some of my money back again.
He is a very nice man. Or at least I think he is I guess time will tell.
I can not see any downside at this point. If I tell my manager now I get fired and if I tell my manager after talking to him I get fired.
But if I talk to him and he agrees to let me pay the difference he will know I am honest and trying to do the right thing.
So that is what I plan to do unless you guys have a better idea. It was a screw up I admit but it can be made right and I will do it. This career is too important not to try.
Don’t you think you’re kinda a piker paying him back 500 a month? Not that I think that is the way to go.
That sounds like something that slimebag Putsy would do. He’d say, “Yeah, I know it’s illegal, but everybody in the industry does it!”
IF this is not a spoof, I find it admireable (hope that's spelled correctly) that this young man or woman feels badly enough about his or her client's loss to pay him back out of pocket.
That being said, why violate more NASD rules just to take care of mistake #1?
[quote=bankrep1]Don't you think you're kinda a piker paying him back 500 a month? Not that I think that is the way to go.[/quote]
I already decided to give him all of the money at the same time. I think it will make him more willing to help me.
I feel good about it. I can not believe that he will want to ruin my career.
I am still undecided if I should ask him to hold it or not. I think I will sell it today or tomorrow and then I will know how much was lost and just give it to him. Since it will be my money I think I will sell 500 before noon another 500 after lunch and do the same thing tomorrow.
PGDM:
What a mensch you are!
Hey, I have a few questions for your retired client. They relate to one of my cat's behavioral issues. What are his per billable hour rates?
Nice troll. Not using contractions is a nice touch.
8.5/10 right now, though that score will drop with each successive attempt at milking this further.
The only real question is who the troll is. Put/Easy/NASD is the odds-on favorite, but not a lock.
[quote=P G D M]
[quote=bankrep1]Don't you think you're kinda a piker paying him back 500 a month? Not that I think that is the way to go.[/quote]
I already decided to give him all of the money at the same time. I think it will make him more willing to help me.
I feel good about it. I can not believe that he will want to ruin my career.
I am still undecided if I should ask him to hold it or not. I think I will sell it today or tomorrow and then I will know how much was lost and just give it to him. Since it will be my money I think I will sell 500 before noon another 500 after lunch and do the same thing tomorrow.
[/quote][quote=P G D M]
[quote=bankrep1]Don’t you think you’re kinda a piker paying him back 500 a month? Not that I think that is the way to go.[/quote]
I already decided to give him all of the money at the same time. I think it will make him more willing to help me.
I feel good about it. I can not believe that he will want to ruin my career.
I am still undecided if I should ask him to hold it or not. I think I will sell it today or tomorrow and then I will know how much was lost and just give it to him. Since it will be my money I think I will sell 500 before noon another 500 after lunch and do the same thing tomorrow.
[/quote]I have yet to post on this thread because I, like others, concluded early on that it is quite likely a fake.
In the unlikely event that it is NOT, I will offer you the following thoughts:
You have screwed up royally. As Bill Singer often points out, however, how you act in your efforts to FIX the mistake could end up only making it worse.
If you give this man cash in an effort to settle the problem, you provide him with compensation which is untraceable(sp?) and outside your firm's legal and compliance infrastructure. (problem!) The client would be able to take the cash and still come back later and allege that you purchased the stock without his permission. You would have no proof of your 'agreement' nor that he had been made whole.
You are breaking AT LEAST one major NASD rule by compensating the client directly for their losses.(problem) I'll leave the attorneys and Putsy to details exactly which rules. So you compound the breaking of one rule by breaking another, and if this comes to the light of day, your attempt to hide your first mistake will only look (problem). You are also giving your clients something that he can hold over your head any time he loses money in the future or has some other reason to be angry with you. This skews the power structure of a theoretically 'trusting relationship' heavily in the client's direction.(problem)
It's not about whether or not they want to ruin their career. It's about the fact that ultimately they will act in their own interests, regardless of the impact on your career.
If this post is for real-you MUST go to your manager, come clean, and do what you can to salvage your standing with the firm. If you can afford to withdraw cash from the bank to make up the losses, then you can afford to have the client DK the trade, bust it, and have any market loss charged against your paycheck. As far as how you spin the 'truth' with your manager, you might want to find a trusted friend who knows more about these matters than I. Whatever you do, don't pay the cash. Do it through your firm, come clean with the boss, and hopefully you have a good enough reputation that they'll give you a chance to prove this was an isolated incident.
What will guarantee that you get fired and have your u-4 marked up is if you hide this and it comes back up later on. Branch managers and BOM's HATE finding out about problems that were first hidden from them. They can't afford to watch your every move, and when they learn that you've hidden one problem for a long time they assume(reasonably so) that you're hiding others. So they give you your walking papers because it's not worth the risk.
Many of you know of my distaste for wirehouse management. This would be one of those situations, however, where they are there to help and protect you. Tell them the truth.
So I've probably wasted time posting to a fake thread, but perhaps some of the rooks out there will learn from this (likely) hypothetical case.