Joseph's Feed
Apr 13, 2011

Ameriprise faces $110 million net cost from settlement

NEW YORK (Reuters) – Ameriprise Financial Inc’s (AMP.N: Quote, Profile, Research, Stock Buzz) agreement to settle hundreds of investor suits against its Securities America brokerage unit will result in about $110 million of net legal expenses to be recorded in the first or second quarter, a person briefed on the situation at Ameriprise said.

The largest U.S. financial planning and one of the country’s largest wealth management firms is on the hook to pay about $150 million for two groups of investors who lost about $400 million on private placements purchased through Securities America brokers, securities later shown to be frauds.

Apr 12, 2011

Ameriprise,broker unit to settle cases for $150 mln

NEW YORK, April 12 (Reuters) – Ameriprise Financial (AMP.N: Quote, Profile, Research, Stock Buzz)
and its brokerage unit, Securities America Inc, have agreed to
pay about $150 million to clients who lost about $400 million
on private placements that turned out to be frauds.

Omaha-based Securities America notified lawyers on Tuesday
that a preliminary agreement had been reached that would settle
a class-action lawsuit and dozens of individual investor
arbitration cases, lawyers involved in the talks told Reuters.

Apr 12, 2011

Citi ordered by panel to pay investors $54 mln

NEW YORK, April 12 (Reuters) – An arbitration panel ordered
Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) to pay a group of investors $54.1 million
for losses from municipal securities funds that cratered
between 2007 and 2008, the biggest award yet involving the
funds in a long series of legal claims against the bank.

Three investors — Gerald Hosier, Brush Creek Capital and
Jerry Murdock — filed in June 2009, seeking $48.2 million of
damages plus other relief related to their losses on three
municipal bond arbitrage funds and three ASTA Finance funds
sold by Citigroup Global Markets brokers.

Apr 12, 2011

Citigroup ordered to pay investors $51.1 million

NEW YORK, April 12 (Reuters) – An arbitration panel ordered
Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) to pay a group of investors $51.1 million
for losses from a municipal securities fund that cratered
between 2007 and 2008.

Three investors filed a claim in 2009, seeking damages
related to several municipal bond hedge funds, including one
called MAT Five. The ruling, entered Monday, includes $17
million in punitive damages.

Apr 11, 2011

UBS fined for playing down Lehman risk to clients

NEW YORK, April 11 (Reuters) – UBS AG (UBSN.VX: Quote, Profile, Research, Stock Buzz) was ordered
by Wall Street’s brokerage regulator to pay nearly $11 million
to settle charges it misled customers about the risks of owning
Lehman Brothers (LEHMQ.PK: Quote, Profile, Research, Stock Buzz) debt in the months before the U.S.
investment bank went bankrupt.

The Financial Industry Regulatory Authority on Monday said
UBS agreed to pay a $2.5 million fine and reimburse its
customers for $8.25 million. UBS did not admit nor deny
wrongdoing in agreeing to settle.

Apr 11, 2011

Wells Fargo unit taps independent broker movement

NEW YORK (Reuters) – Wells Fargo Advisors Financial Network, a unit supporting nearly 1,000 self-employed brokers, expects to add 85 to 100 affiliates this year as more big-firm advisers seek independence — with help.

FiNet, like other custodians and independent brokerage firms, allows Wall Street advisers to go out on their own but still get access to the operations management, investment selection and business development help of the big firms.

Apr 8, 2011

UBS sees US adviser force rising by 150 this year

NEW YORK, April 8 (Reuters) – UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) expects to
boost U.S. financial adviser ranks by about 150 this year
through recruiting from rivals and training newcomers to the
brokerage industry, Robert Mulholland, the No. 2 executive at
UBS Wealth Management Americas, told Reuters on Friday.

Mulholland, head of UBS’ Wealth Management Advisor Group,
expects the firm will hire 175 to 200 people from professions
outside the securities business to be trained as financial
advisers.

Apr 8, 2011

Wells Fargo redoubling broker training efforts

NEW YORK, April 8 (Reuters) – Wells Fargo Advisors believes
training newcomers to become brokers is critical to building a
successful wealth management business and attracting new blood
that can bring in a new generation of clients.

Kent Christian, president of Wells Fargo Advisors’
financial services group, said the Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz)
unit expects to hire and train 700 to 800 new financial
advisers this year.

Apr 7, 2011

US SEC sees fiduciary standard rules late in 2011

NEW YORK, April 7 (Reuters) – The Securities and Exchange
Commission said on Thursday it does not expect to complete
rules on a fiduciary standard for broker-dealers until later
this year.

Changes to 12(b)1 mutual fund fees paid to brokers likewise
may not be addressed until 2012, at the earliest, an agency
spokesman said.

Apr 7, 2011

SEC sees fiduciary standards late in 2011-SIFMA

NEW YORK, April 7 (Reuters) – The Securities and Exchange
Commission does not expect to complete rules on a fiduciary
standard for broker-dealers until later this year, SEC Chairman
Mary Schapiro was quoted as telling a securities industry trade
group.

She also said budget and resource constraints meant some
issues, like changes to 12b(1) mutual fund fees paid to
brokers, would not be addressed until 2012 at the earliest.