Legal Question in Investment Law in Florida

Broker liability for huge losses?
An individual has asked her broker at Smith Barney on several occasions for several months, even before the financial crisis became public, whether she should liquidate her account which is comprised exclusively of municipal bonds. As recently as last month she asked again and was told, again that municipals are the safest place for her money, even though her account value has lost 50% while her bank account has lost nothing.

Does this broker have any liability for her losses for not having represented her interests well?

I am wondering whether Citigroup executives had been told to encourage account holders not to get their assets out of Citi accounts, in view of Citi's financial condition.

Thanks.

KK

Asked on 12/12/08, 8:16 am

Mark Tepper Mark A. Tepper P.A.

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Re: Broker liability for huge losses?

What was the primary investment objective for your friend's account (preservation of capital or something else?).

After we know that, we can advise your friend further.

Feel free to have your friend contact us directly to our website or email us.

Answered on 12/15/08, 3:47 pm

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