Proposed Wall Street regulations will see to it that stock brokers will have to treat their clients differently than in the past, if they already do not. That, according to Washington bureaucrats, ought to make everything financial fine once more.
Of course it won’t do much for most investment portfolios, but it will make politicians feel better. And, they hope, will enhance their reelection chances.
In the old days a broker had to be sure that an investment was ”suitable” for a client. What was suitable was often debatable, but that is what makes securities markets what they are. Investment results are often disputed.
Now the broker is supposed to have a “fiduciary duty” toward the client. according to plans in store for brokers. That should open a hornet’s nest of endless legal problems
The main purpose of this is to give investors more ammunition to sue brokers for real or imagined damages. More power to the lawyers. More political donations to the politicos who come up with the suggestions.
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