Great News for Investors vs. Stockbrokers

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
Topic Author
Stinger
Posts: 37
Joined: Thu Mar 01, 2007 7:18 pm

Great News for Investors vs. Stockbrokers

Post by Stinger »

Stockbrokers no longer have free reign
"A Supreme Court ruling has just been issued, which requires firms to put your money in investments that benefit you and not them."

Notes from Clark Howard here
User avatar
Rick
Posts: 328
Joined: Sat Apr 07, 2007 2:28 pm
Location: South West

Appeal

Post by Rick »

The blog says they will keep updates on any apeals. I didn't realize one could apeal the US Supreme Court?

Rick
User avatar
BCP
Posts: 59
Joined: Fri Apr 13, 2007 10:34 pm

Re: Appeal

Post by BCP »

Rickdunnjr wrote:The blog says they will keep updates on any apeals. I didn't realize one could apeal the US Supreme Court?

Rick

Most times the court will decide on a narrow issue, and then send it back to the trail court if necessary for the actual fact determinations. (e.g. I sue you by saying you broke a law, before we get to the decide whether you broke it or not you say said law is unconstitutional, we go up the appeals on whether the law is good or not, after which the SC may declare it a valid, we still have to go back to the trail court to see if you actual broke it or not...from there you could appeal the court's determination on another small issue or its actual factual conclusion of your guilt or liability)

litigation is a racket; shame of it is we have the best system out their...
User avatar
bottlecap
Posts: 6563
Joined: Tue Mar 06, 2007 11:21 pm
Location: Tennessee

Post by bottlecap »

In the context of the "article," I agree that it is an odd statement to say they will keep you updated of any appeals from the U.S. Supreme Court. The legal issue, not the factual issues, would seem to be determinative. In addition, a constitutional consideration is generally only considered if the factual issues have already been decided. Perhaps the authors mean that they will keep us updated if the Court reconsiders the issue in another case?
mptfan
Posts: 6262
Joined: Mon Mar 05, 2007 9:58 am

Re: Appeal

Post by mptfan »

Rickdunnjr wrote:The blog says they will keep updates on any apeals. I didn't realize one could apeal the US Supreme Court?

Rick
The article did not state that the decision came from the US Supreme Court.
User avatar
bottlecap
Posts: 6563
Joined: Tue Mar 06, 2007 11:21 pm
Location: Tennessee

Re: Appeal

Post by bottlecap »

mptfan wrote:
Rickdunnjr wrote:The blog says they will keep updates on any apeals. I didn't realize one could apeal the US Supreme Court?

Rick
The article did not state that the decision came from the US Supreme Court.
That's true, but I don't think that a state supreme court would have jurisdiction over the SEC.
User avatar
alvinsch
Posts: 1612
Joined: Mon Feb 19, 2007 10:16 pm
Location: Northwest

Post by alvinsch »

I think the linked blog got it wrong as the news articles I've read on this says it was a federal appeals court decision and the SEC could still appeal it to the Supreme Court.
link to article
In another blow for the SEC, and a huge victory for the Financial Planning Association, a federal appeals court shot down the so-called Merrill Lynch rule by a vote of 2-1.
- Al
User avatar
Rick
Posts: 328
Joined: Sat Apr 07, 2007 2:28 pm
Location: South West

Post by Rick »

alvinsch wrote:I think the linked blog got it wrong as the news articles I've read on this says it was a federal appeals court decision and the SEC could still appeal it to the Supreme Court.
link to article
In another blow for the SEC, and a huge victory for the Financial Planning Association, a federal appeals court shot down the so-called Merrill Lynch rule by a vote of 2-1.
- Al
Interesting, as I read the blog, I got the sense that the writer was not too accurate. Would be great to strike down the Merril Lynch Rule to some degree. Seems like so many people are being taken to the cleaners by the Financial Services Industry.

Rick
User avatar
cyrene
Posts: 38
Joined: Tue Apr 03, 2007 4:41 pm

The Actual Opinion

Post by cyrene »

For those wishing to read the opinion, the PDF is here:

http://pacer.cadc.uscourts.gov/docs/com ... -1242a.pdf

The court was the Court of Appeals for the District of Columbia Circuit. The route of appeal is for the SEC to file a petition for writ of certiorari to the Supreme Court of the United States.

Should be interesting.

cyrene
User avatar
Topic Author
Stinger
Posts: 37
Joined: Thu Mar 01, 2007 7:18 pm

Post by Stinger »

Thank you all for the clarification -- the court system is confusing (to me). I hope the issue truly resolves in the best interest of investors.

With pension plans and social security becoming obsolete, people can't afford to be ripped-off by high fees and inappropriate employer-sponsored 401-k plans, etc. -- or unscrupulous stockbrokers lining their pockets with kickbacks.

~Stinger
Post Reply