This story is from today's WSJ: Merrill Lynch & Co. paid $300,000 to settle an investigation by New York Stock Exchange regulators, who said a former Merrill trader routinely altered the trading accounts of Merrill clients in 2003 in order to improve the holdings of a favored hedge-fund client. The trader at the center of the investigation, John Vedovino, is now employed at Bear Stearns Cos., and regulators' filings suggest that NYSE Regulation Inc., the self-regulatory unit of NYSE Euronext, began disciplinary proceedings against Mr. Vedovino in May regarding the same alleged violations. A representative for Bear Stearns said both the company and Mr. Vedovino declined to comment. Merrill has acknowledged no wrongdoing in the matter, but settled regulators' claims that its supervision of Mr. Vedovino was inadequate. Merrill terminated Mr. Vedovino on Aug. 4, 2003, and he joined Bear Stearns the same month, according to filings at the Financial Industry Regulatory Authority. According to a New York Stock Exchange report released Wednesday, Mr. Vedovino entered trade orders for nearly a dozen institutional clients, mainly hedge funds, and made more than 1,000 posttrading changes to those accounts during a seven-month period that ended in August 2003. The investigation concluded that most of the alleged changes benefited one particular hedge fund; Merrill wouldn't release the name of the hedge-fund client. Mr. Vedovino altered buyers' information for certain trades, the report said, after those trades lost value for the favored client later in the trading day.
Now, Merrill doesn't exactly have small retail accounts anymore. I think the only retail accounts they have accepted in years is high net worth. So the guys who got screwed over probably weren't small frys like me. But I was still a little upset at this. this is the kind of thing I try to deny goes on when I hear somebody complaining about being screwed over by thier broker. I still don't think this thing is prevalent with retail guys like me using internet connections with their broker trading stocks because I always get my confirmations instantly, there isn't enough time for someone to play around with my order and move it up or down the list. Still, whoever got screwed over by this piece of crap has my sympathies. This game is hard enough without your broker screwing you over.
"Merrill has acknowledged no wrongdoing in the matter" They need to attend mens Bible classes, or somt'n similar that will teach them the basic difference between right and wrong, what stealing is etc.
I love this quote. Seen this type of thing so many times over the years from Merrill and the others too for that matter. 'We did nothing wrong but here's $300,000 because we're such nice guys'. Kinda like how Michael Jackson didn't diddle that little boy but gave him 15 million because he's a super nice guy.
I'll bet the hedge fund followed him to Bear. They know who there friends are. Now, 300 grand??? what's that about? How much damage was done? I'm telling you, everybody is going to leave this casino. We'll be playing with ourselves, not like that's always a bad idea, but you know what I mean.
I didn't want a DUI on my record so I told the judge, "I'll pay the fine, but I'm not admitting anything!"
================== Mo; That's a standard lawyers quote hopefully to help limit further financial damage; but you are right on attending Bible classes.