Stock Brokers Will Also Change

Stock Brokers Will Also Change

New regulations on Wall Street will see to it that stock brokers will have to treat their clients differently. That, according to the politicians in Washington, will make everything fine once more.

Of course it won’t do much for your portfolios, but it will make the politicians feel better. And enhance their reelection chances.

In the good old days a broker had to be sure that an investment was ”suitable” for his or her client. Naturally, what was suitable was often debatable. But that is what makes the securities markets what they are. Debatable. The same way some politicians always appear to make promises when running for office. Results are something else.

Now the broker is supposed to have a “fiduciary duty” toward the client. according to some plans in store for brokers.

I agree with many on Wall Street that the main purpose of this is to give investors more ammunition to sue their brokers for real or imagined damages when investing.

More power to the lawyers. More political donations to the politicos who have come up with the suggestions.