investors who held shares of FirstFed in full-service brokerage accounts should consider their options to recover their investment loss.
Coral Gables, Florida (Vocus) February 1, 2010
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) comments on the FirstFed Financial Corp (OTC:FFED) Chapter 11 Bankruptcy filing (Petition No. 10-10150) filed on January 7, 2010, in the United States Bankruptcy Court for the Central District of California. The bankruptcy petition filed on behalf of the bank holding company, FirstFed Financial Corp (“FirstFed”), resulted in substantial losses to common shareholders. The bankruptcy filing followed the closing of First Federal Bank of California, a wholly-owned subsidiary and principal asset of FirstFed, by bank regulators. Investors in FirstFed, bank holding company, should consider what recourse is available to recover their investment losses in FirstFed stock.
For common shareholders who accumulated shares in FirstFed, the recent developments represent a financial set back. According to securities attorney Andrew Tramont, “investors who held shares of FirstFed in full-service brokerage accounts should consider their options to recover their investment loss.” The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that govern the securities industry’s conduct and safeguard the investing public. Brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice in accordance with FINRA Sales Practice Rules and Regulations. Recommendations of unsuitable investments and/or maintaining unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.
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