Wall Street Journal cites Brian Smiley on FINRA’s efforts to recruit arbitrators to handle Morgan Keegan claims.
Wall Street needs an army of arbitrators to clean up the mess left by the headline-grabbing collapse of three mutual funds stuffed with collateralized debt obligations and other subprime-related securities.
About 400 complaints have been filed against the Morgan Keegan & Co. investment-banking unit of Regions Financial Corp. by customers claiming they were burned by the funds, which plunged in value by as much as 82% after the housing meltdown hit.
So many investors have filed arbitration claims that the industry-funded machine for handling such disputes is overloaded. To decide all the disputes, the Financial Industry Regulatory Authority has been…
By Randall Smith