The Opacity of Wall Street

How honest is your broker — who knows? WSJ reports:

Stockbrokers are being routinely allowed to scrub some customer complaints from their public records, leaving investors in the dark about potentially troubled advisers, according to a study of more than 1,600 arbitration cases.

Brokers asked to remove customer disputes from their records in 1,625 arbitration cases filed from 2007 through 2011, according to a report by the Public Investors Arbitration Bar Association, an association of securities lawyers. Arbitrators approved removal requests in more than 90% of the 629 cases that settled. In the other cases, which went to an arbitration hearing, almost half the requests to clean records were granted. During the period, there were 17,635 arbitration cases overall, the bar association report shows.


They told me if I voted for Mitt Romney, rapacious Wall Streeters would be set loose to rip us all off — and they were right!

And, uh, sorry for stealing Glenn’s schtick.

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