Could Arbitration Help You Recover Investment Losses?

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There is a common misconception here. If pre-dispute arbitration agreements are banned, brokers and firms will not be forced to arbitrate customer disputes, and customers will NOT have a choice of court or arbitration. If there is no agreement, there is no arbitration, and investors with claims for less than $100,000 will find themselves with no recourse - no ability to compel arbitration and insufficient resources to go to court.
Be careful what you wish for.

Mark Astarita of NY 2:27PM September 23, 2009

It could; however, the lengthy article fails to mention the proposed Arbitration Fairness Act, which, if passed, would allow disgruntled investors the choice of seeking recourse in court or through securities industry sponsored arbitration forums. Did I fail to mention that arbitrators are not required to know the relevant law or employ it in their decision-making process? Learn more about the foibles of securities arbitration at http://www.LGEsquire.com/LG_Links.html .

Les Greenberg of CA 2:03PM September 23, 2009