Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Schwab v. Cuomo, Round Two Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, August 25, 2009

Schwab v. Cuomo, Round Two

News summary by MFWire's editors

Chuck Schwab is gaining attention for his fight against New York Attorney Andrew Cuomo over whether Charles Schwab (the brokerage) should compensate clients frozen in auction rate notes.

That fight included penning an opinion article for Monday's Wall Street Journal. The paper follows up with a news report in its Tuesday edition.

Schwab is the most prominent brokerage firm to refuse Cuomo's persuasions to settle. The list of distributors to settle includes close rivals TD Ameritrade and Fidelity Investments.

Schwab (the man) argues that as a distributor of the auction rate notes and not an underwriter, the broker has no duty to make the investors in the securities whole. Indeed, he argues that being responsible for the failure of securities that have a track record and liquid market at the time of sale -- such as auction rate notes -- would make remaining the fee-only broker model impossible. If that were to happen, Schwab would have to charge clients an advisory fee to compensate themselves from the risk, he argues.

Cuomo's office disagrees, and last week it filed civil fraud charges against Schwab (the brokerage). 

Edited by: Sean Hanna, Editor in Chief


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use