Minnesota Progressive Project: Franken wants to protect consumers from bankster fraud

If your investment broker committed fraud and you lost money or worse, most often you would be forced to accept an arbitration agreement. In other words, you wouldn’t be able to pursue a civil or criminal complaint against the bankster who screwed you over.

Sen. Al Franken (DFL-MN) wants to eliminate this protection for banksters.

Franken and a group of key Senate and House colleagues urged the SEC to use its existing authority to prevent mandatory arbitration clauses in broker-investor contracts. The need for the SEC to act increased after one of the country’s largest brokerage firms decided to dramatically expand its mandatory arbitration provisions in a way that would harm investors.

“We are deeply concerned that the Commission’s failure to respond to the dangers posed by widespread forced arbitration will weaken existing investor protections,” wrote Sen. Franken and his colleagues in their letter. “We urge the Commission to act quickly to exercise its authority…to prevent this practice and protect investor rights.”

Read the full article >>

© U.S. Senator Al Franken, Minnesota -- Official Campaign Website, 2013. |
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