the problem with wall street.

[rdking647]

wall streets problem can be summed up simply.. fiduciary duty..
when you open a brokerage account you thing your broker has your best interests at heart.. but thats not always true..
the broker has a responsibility to the firm over you..
for example... a broker may recommend his own firms mutual fund over a competitor even though the competitor is a better fund..
or he may recommend one bond over another because his firm has an inventory of the bond that they would like to dump..

with wall street brokers the customer doesnt come first.. and the bigger the customer the closer to the front of the line.. why else do you think they allocate hot IPO's (usually free money) to their best customers. Its a rigged system

[Avalux]

1. Along the same lines....my mother's assessment of Wall Street:

"those people go to work everyday and operate like machines. They don't care about people, in fact, they spend all their time thinking up ways to screw people over to make money. Some are paid to spend all their time looking for loopholes and ways around laws. They don't care about people at all."

[moondust]

2. Fiduciary Law & Legal Definition

A fiduciary is someone who owes a duty of loyalty to safeguard the interests of another person or entity, such as a trustee of a testamentary trust, a guardian of the estate of a minor, a guardian, committee or conservator of the estate of an incompetent person, an executor of a will, an administrator of the estate of a decedent or an advisor or consultant exercising control over a testamentary or express trust.

A fiduciary may be an executor, administrator, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer or any other person acting in a fiduciary capacity for any person, trust or estate. Fiducairies may be required to hold funds and assets in a special fiduciary account and file periodic acounts and/or inventories with the court. A fiduciary has a duty not to benefit at the expense of the one they are responsible for. A fiduciary must avoid "self-dealing" or "conflicts of interests" in which the potential benefit to the fiduciary is in conflict with what is best for the person who trusts him or her.

http://definitions.uslegal.com/f/fiduciary

Has the DOJ approached potential prosecution from the fiduciary angle?

[Laelth]

3. k&r for the truth. n/t

-Laelth