Big Bank Brokerage cheats employees

Jon Chevreau writes about a broker who was lied to by his employer and eventually moved to another firm and started civil action against his former employer.

It seems his wife was an active investor and did not require a full service broker. However the broker was told it was IDA policy that employees families must have their accounts with the firm. When the broker confronted the firm with the fact that it was not an IDA rule they informed him that it was now the firm's rule.

This did not sit well with the broker and he changed firms.

The important issue here is that the big bank brokerages will lie and cheat their employees as well as their clients. In the lawsuit they deny all the allegations as well as denying they had any fiduciary obligations.

It will be interesting to see how this plays out in court. It will be a big black eye for the bank.