Arbitration – BofA SEC Settlement – NY AG Lawsuit
A couple of quick hits on issues previously addressed:
BofA is one of a number of banks to drop mandatory arbitration provisions in their agreements with credit card holders. It follows JP Morgan Chase which stopped referring credit card disputes to arbitration last month. The tide seems to be turning against arbitration in the consumer context. We’ll see if that sentiment has any effect in the employment arena.
BofA/SEC Bonus Settlement
Executive compensation at Merrill Lynch was covered at length in the media and this blog during the early part of 2009. Merrill attempted to settle complaints raised by the SEC but a federal judge in New York put the brakes on the settlement and has yet to rule on whether he will approve the settlement.
Cuomo Sues Schwab over Auction Rate Securities
New York Attorney General Andrew Cuomo, who earlier in the year challenged Merrill bonuses, filed a lawsuit today against Charles Schwab over auction rate securities it sold to its customers. In a statement released today, Mr. Cuomo stated:
Charles Schwab owed its customers a duty to properly understand and make accurate representations concerning auction-rate securities. Today we commenced a lawsuit to remedy Schwab’s repeated breach of that duty.
There are numerous auction rate lawsuits pending throughout the country as investors, large and small, are unable to obtain funds invested in these securities.