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NY Times (today) NASD Arb story

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Dec 10, 2006 11:55 pm (business section)

"When Winning Feels A Lot Like Losing"

Former MS broker (now at Citi)---same old story, elderly woman persuaded to load up tech stocks and house mutual funds at market top (June of 2000).

MS was not the only firm who did this before the bubble burst so this isn't a condemnation of MS. It's a condemnation of brokers who fail to diversify and refuse to protect their elderly clients from risk.

Dec 11, 2006 5:01 am

That's a Time Select article. If you'ld like to post the relavent paragraphs, please do. Otherwise, I (speaking only for myself) am not going to pay for the NYT online (and I spend A whole lot of time there!).

Mr. A

Dec 11, 2006 9:08 am

The gist of the story is a Bush appointed jduge in San Diego vacated the award and directed the arbitrators to review the case again. The attorney for the elderly woman (former client) wants the NASD to review the arbitrators actions.

The decision was in favor of the plaintiff, however they only awarded her $5K. Her losses were close to $300K.

The broker advised this woman to sell her rental property in 1998 then loaded her up with tech stocks and B shares in MS house mutual funds. Failed to diversify et al. Am sure the broker didn't know any better. She was just too enchanted with Mary Meeker and no longer there Mayree C. Clark (led many a MS broker astray and destroyed retirees' portfolios). Same old story---