It is a rare event when law students at the Investor Justice Clinic have the opportunity to participate in a securities arbitration case that goes all the way to hearing. The claim in question involved a Washington Mutual (WAMU) bank customer who was referred to the bank’s on-site stockbroker. The stockbroker was not a bank employee, but an employee of the bank’s stock broker affiliate. In this case, WAMU bank’s broker affiliate was WAMU Investments Inc., which later became Chase Investment Services LLC.
The trouble started when a helpful WAMU bank teller noticed that the customer had a large amount of cash sitting in her account and recommended that she speak with a WAMU financial advisor who could get her a better return on her assets.
[See related blog posting: Investor Alert: Beware of Stockbrokers That Prey on Bank Customers]