On December 28, 2007 Bloomberg news reported:
“The worst-performing bond fund was the $190 million Regions Morgan Keegan Select high Income, which plunged 59 percent because of losses tied to subprime mortgages. It’s managed by Jim Kelsoe at Morgan Asset Management Inc. in Memphis, Tennessee.
The Morgan Keegan bond mutual funds are “worst in class” at a time when the phrases “subprime crises” and subprime lending” have become household words and moved from the financial news to mainstream news. In 2007, the funds lost 50 percent or more of their value, while other funds in their peer group either had positive returns or losses of 8 percent or less.
Of 439 other intermediate bond funds and 253 other high-income bond funds, none suffered losses of this magnitude.
FINRA arbitration is a process for resolving disputes between investors and brokerage firms or individual brokers. It provides a streamlined, less formal alternative to court proceedings. In FINRA arbitration, a panel of arbitrators, typically experienced industry professionals, hears both parties’ arguments and evidence before making a binding decision. This process is often quicker and less costly than litigation. FINRA arbitration aims to offer fair and impartial resolution, ensuring that disputes are handled efficiently and transparently. It is designed to be accessible to investors, providing them with a structured method to seek redress for grievances in the financial sector.
FINRA arbitration is a dispute resolution process offered by the Financial Industry Regulatory Authority (FINRA) for resolving conflicts between investors, brokerage firms, and registered representatives. It serves as an alternative to traditional court litigation, providing a faster and often less costly way to settle disputes. In FINRA arbitration, a neutral arbitrator or panel hears both sides of the issue and makes a binding decision. This process is particularly common in cases involving allegations of securities fraud, breach of fiduciary duty, or other violations of securities laws. Investors and firms generally agree to arbitration in their customer agreements, making it a common method for resolving issues in the securities industry. With a focus on efficiency and finality, FINRA arbitration helps maintain trust and stability in the financial markets.