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Former Brokers Say JP Morgan Favored Selling Bank's Own Funds Over Others

Comments

  • I'm shocked! Not!

  • Same manure, different day.

    Edward D. Jones & Co. received $82.4 million in secret payments from seven mutual-fund firms in the first 11 months of 2004, through a lopsided fee structure that in some cases gave the brokerage firm more compensation for selling poorly performing funds than for selling stellar performers.

    Some of the worst-performing fund families offered Jones the richest incentives to sell their products.

    http://online.wsj.com/article/0,,SB110565044387025581,00.html

    Where are the customer's yachts.

    http://www.tvacres.com/images/ads_tydbol_man.jpg

  • Reply to @Mark: Where are their fiduciary responsibilities of these so called "financial advisors" or brokers?
  • Reply to @Sven: These so-called "financial advisors" are not held to the fiduciary standard and firms have been battling against the imposition of fiduciary standard for so long.

    They are really brokers despite their various titles and the only requirement is that the investment is suitable at the time they are sold and suitability standard is much loosely defined. They might also be fiduciary but not to the client but to the firm.
  • Reply to @Investor:

    "This will not change until a fiduciary standard is assigned to every relationship between retail advisor and retail client in the United States."

    http://www.thereformedbroker.com/2012/07/03/i-want-you-to-picture-a-furnace/

    More flushed manure.

    http://en.wikipedia.org/wiki/2003_mutual_fund_scandal
  • Why is this news? I was a Merrill Lynch broker briefly in the early '80s, and even they the company favored its own products.
  • Is this even unethical? Or is it like going into an Apple store and being suprised that they try to sell you an iPad?
  • What I don't know is why this is news. "It is not cheating if you are not caught" is the mantra most people live by. So any investment bank which is selling OTHER company funds over others does not exist. They just haven't been caught yet.

    It is high time we all woke up and eschewed big investment banks and look to boutique fund shops. Of course, if you are luck is as good as mine, you will find Marketfield only to learn it will get sold to NY Life. Oh well, there's always FPA Cresent...
  • If anyone has a problem with this, then make your own financial decisions or hire an "independent" financial adviser.
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