Very seriously, this may be the most important post I've ever made.
When we, most or maybe all of us, signed up for online trading, we also signed away some very important rights. Namely, the ability to take our brokers to court.
Given that DTC comprises all important brokers, the following is, imo, a MUST READ for all traders/investors. I'll provide the link after a few quoteouts.
quote:Our members have represented tens of thousands of investors in arbitration and have arbitrated many thousands of cases against the brokerage industry. The vast majority of our clients seek to recover lost savings and retirement funds. Many are retirees with no independent ability to replace their losses.
quote:None of these improvements alters the undeniable fact that the current investor arbitration system is neither voluntary nor unbiased. Nor is it fair to investors. Yet the industry has succeeded in forcing investors into mandatory arbitration as a condition of doing business with the brokerage industry.
quote:The survey also indicated that there was a movement toward putting these agreements in cash accounts. SEC Chairman Ruder testified to Congress, “I expressed vocally and vociferously my opposition to that trend. I believed then, and I believe now, that customer choice is an exceedingly important aspect of this industry and the movement apparently to push these clauses on the public so that they couldn’t trade at all without them was in my mind simply terrible.”4
From the Dec. 12, 2007 hearing, some excerpts from the testimony of Tanya Solov Director, Illinois Securities Department Illinois Secretary of State:
quote:The only chance of recovery for most investors who fall victim to wrongdoing on Wall Street is through a single securities arbitration forum maintained by the securities industry. Many investors remain unaware of this industry arbitration provision, fail to appreciate its significance, or feel powerless to negotiate a different approach to dispute resolution with their brokers.
quote:The Financial Industry Regulatory Authority (FINRA) should require its member firms to offer their customers a meaningful choice between binding arbitration and civil litigation. If arbitration really is fair, inexpensive, and quick, as its adherents claim, then these benefits will prompt investors to choose arbitration. If, on the other hand, arbitration does not offer these advantages, then this mode of dispute resolution should not be forced upon the investing public.
quote:The very notion of having a matter heard by a panel of independent arbitrators assumes that they come to the arbitration process with no preconceived opinion or interest in any party or issue at conflict. However, industry arbitrators bring their particular experiences, based on their firm’s training, policies and procedures, to the decision-making process. As evidenced by industry scandals and regulatory enforcement actions, the industry’s way of doing things is not always in conformance with the law. Even if the industry arbitrator has no preconceived notions, the industry arbitrator creates a presumption of bias that is contrary to the principles of fair play and substantial justice. Do courts in complex medical malpractice cases insist that one physician be empanelled in the jury box to “educate” the other jurors? Clearly, such a requirement in a judicial proceeding would be dismissed as creating a bias that would taint the final ruling and pervert the concept of a fair hearing. It is also disconcerting that the industry believes that the public arbitrators are not capable of understanding a case and rendering a decision. If that is indeed true, investors should not be forced to bring their case in such a forum. NASAA submits that intellectual honesty should not be discarded at the door of the arbitration forum.
This is why I only play the pennies with a very small slice of my entire pie. If my pennies pan out then great. If she tanks I'm out beer, gas, and blow money for the coming week or so and that's it. To those who have lost their retirements, savings, or other mode & means I wish you a rotta ruck. Don't play the pennies to get rich overnight. Chances are you'll go bust long beforehand. I've said once and I'll say it again. Don't play the pennies with more than you can afford to lose...
Posts: 669 | From: Gouldsboro, Pa. | Registered: May 2006
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