Susan Antilla is an award-winning journalist and author and Founding Journalism Fellow at TheStreet Foundation. She has written for Bloomberg View, The New York Times and USA Today. She is author of Tales From the Boom-Boom Room: The Landmark Legal Battles That Exposed Wall Street’s Shocking Culture of Sexual Harassment,
a book that The New York Observer called “a work of compelling Wall Street anthropology.”
You can get in touch with her through her Twitter feed
or by email at Susan.Antilla15@gmail.com
State securities regulators unveiled a plan at their annual meeting last week that zeroed in on the role stockbrokers can play in sounding the alarm that a senior is at risk of being ripped off.
The securities industry and its regulators have been tripping over themselves trying to make things safer for elderly investors. But the new proposal by The North American Securities Administrators Association (NASAA) may have gone too far for Wall Street’s liking.
Stockbrokers say they would like to be able to tell authorities when they suspect that an elderly client is at risk of financial exploitation. So NASAA and others have been working on laws and regulations that would allow brokers to report their suspicions without violating privacy laws. Various proposals also have allowed brokers to decline to execute a transaction for 10 days if they suspect something fishy is going on.
The NASAA proposal would make it mandatory for brokers to report their suspicions. But it’s likely that the industry won’t go for that idea, preferring instead to have the option of looking the other way when they suspect financial abuse.
You can read my story for TheStreet here.
A former broker at Morgan Stanley has filed a class-action race-discrimination complaint against the company, accusing it of making “an end-run around the civil rights laws” with a new policy that bars employee participation in class actions and forces civil rights claims into private arbitration.
Kathy Frazier said in her complaint that African-Americans were underrepresented in the ranks of brokers at Morgan Stanley and were paid “substantially less” than their counterparts.
Ms. Frazier previously worked at Goldman Sachs and Merrill Lynch and has an economics degree from Amherst College and a master’s degree in business administration from the University of Pennsylvania’s Wharton School of Business. I wrote about Morgan Stanley’s new policy for The New York Times DealBook. You can read the story here.
The Securities and Exchange Commission said on Monday that it had reached a $40 million settlement with a New York-based investment adviser over charges that it had improperly used mutual fund assets to pay brokerage firms for the marketing and distribution of its funds.
The case against the investment adviser, First Eagle Investment Management, is the first brought against an asset manager under an SEC initiative that aims to protect fund shareholders from paying for marketing expenses that should come out of the firm’s own assets.
I wrote about the settlement for The New York Times DealBook. You can read the story here.
The Vanguard Group, the world’s largest mutual fund company, has fired a whistleblower who shared information with TheStreet about deficiencies in the company’s customer account security.
Karen Brock, a client relationship administrator in Vanguard’s Scottsdale, Ariz., office, had told me that customers could access their Vanguard accounts even after entering typographical errors in their personal security answers. In my own account at Vanguard, I have repeatedly tested her assertions and found them to be true.
Brock also had detailed the complaints of a customer who said that he had asked his son to mimic his voice to test Vanguard’s “Voice Verification System.” Vanguard’s system allowed the son to gain access to the father’s account, Brock said. She also shared an internal training document where the names, email addresses, phone numbers and account numbers of several current or prospective clients had evaded the redaction process.
You can read my article about Brock’s firing here. You can see the original article that led to the firing here.
I spoke with Alison Morris of Fox 5 News in New York about my story on security lapses at the mutual fund giant The Vanguard Group. You can watch the video here.
If a hacker steals money out of your brokerage account, the financial industry would like to reassure you that a reimbursement is in the cards.
But those “guarantees” often come with extensive demands that you have been vigilant about online security.
A lot of firms, for example, insist that you regularly check your account for unauthorized transactions. And there’s more. You can read my article for TheStreet here.
As if a turbulent day for stocks wasn’t problem enough for investors, glitches in the websites of many brokerage firms added to the public’s headaches today.
Testy customers took to Twitter to blast their brokerage firms and mutual fund companies for Web sites that had crashed, leaving them unable to execute trades in a volatile market.
As always, euphemisms abounded. Brokerage firm spokespeople said they had “a slowness issue,” or “a brief period of sporadic Web site inaccessibility,” and the like. But a crash? Not us.
Investors weren’t buying it. “@TDAmeritrade seriously? your servers are crashing today,” wrote one customer. And another: “What a disaster. Time for a new broker.”
You can read my article for TheStreet here.
CNBC’s SquawkBox invited me in yesterday to discuss my story about The Vanguard Group’s online security. A whistleblower has been speaking with me on the record about a complaint she filed against Vanguard with the Securities and Exchange Commission. You can read the article here.
And here’s the CNBC video:
A whistleblower has gone to the Securities and Exchange Commission with complaints about the security of customer accounts and information at The Vanguard Group.
The world’s largest mutual fund company told me that its security is strong. But the whistleblower, who spoke to me on the record about her complaints, disagrees. You can read my latest column for TheStreet here.
The good news: A problem brokerage firm is shutting its doors.
The bad news: A lot of its bad brokers will be finding work elsewhere.
I wrote about the shutdown of Atlanta-based J.P. Turner Associates in my latest column for TheStreet. You can read it here.
The American Society of Business Press Editors (ASBPE) said tonight that my series of columns, “Policing the Brokers,” had won first place in the original Web commentary category. Here are links to the columns:
‘Unaccountable Bureaucracy’ Wins High Marks From Public
SEC Boasts Record Wins But Powerful Execs Remain At Large
Unfazed By Finra Charges, Seniors Still Swoon for David Lerner Pitch
If you read the warm-and-fuzzy ads and Web site copy, you’d be convinced that you were a VIP in your stockbroker’s life. So why would your best-pal broker not want to work under a standard that he or she put your interests first?
The sad answer is in my latest column for TheStreet. You can read it here.
The securities industry doesn’t like the idea of reminding investors to check the records of their stock brokers. So when Finra suggested that there be a hyperlink on brokerage firms’ home pages to take customers to its BrokerCheck tool, the industry went on a letter-writing campaign to oppose it.
My personal favorite: The brokerage firm chief compliance officer who told Finra he was worried about “unscrupulous investors.” Yep, you read that right. Here’s my column for TheStreet on Wall Street’s latest anti-investor campaign.
Finra arbitration is often a surprise to investors — not least of all because so many Wall Street customers have no idea that they sign away their right to court when they open an account.
But how about the surprise of learning that one of your arbitrators had been indicted? Or that he had said he was a lawyer, but wasn’t?
My June 24 column for TheStreet tells about Finra’s latest surprise arbitrator — the guy who was arrested for being a Peeping Tom. Really. You can read it here.
Finra, the securities regulator that’s funded by Wall Street, got some attention last week when it said it was getting tougher on bad stockbrokers. The regulator said fines were going up and sanctions for fraud and the sale of unsuitable products were getting more onerous.
But Finra already had sanction guidelines that might have come to play in the case of Jerry A. Cicolani, Jr., a former broker who worked at Merrill Lynch and at Cleveland’s PrimeSolutions Securities Inc. Somehow, though, despite having been target of 69 customer complaints over the past 13 years, Cicolani wasn’t barred from the business until last September.
By that time, criminal authorities already were moving in with an investigation into his role in a Ponzi scheme. On May 1, he pleaded guilty to two criminal counts, including the sale of unregistered securities. He persuaded many of his former clients from Merrill and PrimeSolutions to invest in that scheme. I wrote about Cicolani in my story yesterday for The New York Times. You can read it here.
Earlier this month, the New York press club The Society of the Silurians said I’d won its “Excellence in Journalism” award for my online columns for TheStreet.com.
From the judges: “In these searing columns, Antilla highlights the anti-consumer sentiment that has taken hold of significant portions of the Republican Party as it attempts to distance agencies such as the Consumer Financial Protection Bureau.”
My stories also have been entered into the national competition for The National Federation of Press Women, which said this week that I’d won first place in two of its “at-large” contests, which include 27 states that don’t have direct affiliations with NFPW. One winning entry was for my columns for TheStreet about the fleecing of senior citizens by stock brokers. A second winning entry was in the feature category, for my article in The New York Times about sex discrimination at Sterling Jewelers, the biggest retail jewelry operation in the United States. The winners in the “at large” categories have been entered into NFPW’s national competition.
For Financial Literacy Month, I put together a reading list, an “investor help” list and some videos for TheStreet Foundation.
The reading list is here.
The “investor help” list is here.
Here’s an interview I did with Helaine Olen, author of Pound Foolish: Exposing the Dark Side of the Personal Finance Industry.
And here’s a Q&A with Remar Sutton, volunteer chairperson at FoolProof, a rare financial literacy effort that actually gets results.