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Fascinating Auction Rate Securities Arbitration. Rare win for brokerage firm

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Jan 3, 2011 1:06 pm

In a FINRA Arbitration Statement of Claim filed in November 2009, Claimant Grand Circle sought at least $2.5 Million in damages arising out of the purchase of ARS in its  CCO brokerage account.  The case was presented as one in which Claimant Grand Circle was alleging that it had been victimized by the unsuitability of the ARS investment.  However, Claimant Grand Circle attempted to base its unsuitability claim upon the background and experience of its Assistant Treasurer rather than the actual Claimant, which was a sophisticated, institutional investor.

Fascinating Auction Rate Securities (ARS) arbitration results in win for Broker-Dealer.

Jan 3, 2011 5:59 pm

Nice job Bill, very interesting story. It is a clear lesson that you really need written investment policy statements, for clients like that. BTW, your grammar and presentations skills are Maxima Cum Laude.