Investors count on their financial advisors to treat them fairly by not charging ridiculously high profits without making adequate disclosures.
Pensacola, FL (PRWEB) June 10, 2013
New transparency rules now force financial advisors to disclose markups on municipal bond transactions. After these rules were issued, hundreds of thousands of municipal bond transactions were analyzed for handling fees. The analysis shows that many Wall Street firms are charging unfair fees when consumers are purchasing and selling municipal bonds. It is estimated that the excessive markup and markdowns have accounted for more than $20 billion in recent years. Many municipal bond holders are now suffering from this municipal bond fraud.
When you purchase or sell a municipal bond, financial advisors on Wall Street will apply a fee, which is called a “markup” or a “markdown.” Historically, these fees were kept private, leaving many people either unaware that the fee existed or unsure whether they received a fair fee. A new transparency rule is in place which requires financial advisors to disclose all markups and markdown fees on transactions.
“Investors count on their financial advisors to treat them fairly by not charging ridiculously high profits without making adequate disclosures,” according to Peter Mougey who runs the Securities and Business Litigation Department at Levin Papantonio. “This is just another example of Wall Street walking all-over Main Street,” says Mougey.
There are many victims of this excessive markup and markdown with more than $2.8 trillion in outstanding municipal bonds. Individual investors make up about two-thirds of that, with mutual funds and other investment packages compiling the remaining third. Some individual investors have been taken advantage of so much that the value of their municipal bond has little to no return.
Many individual and institutional investors have suffered serious financial loss due to unethical municipal bond markup and markdowns. In order to recover losses, investors can consult with stock broker attorneys and those who are familiar with stock broker fraud lawsuits. Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, PA has been recognized as one of the country’s most successful law firms that helps victims recover from investment and securities fraud.
About Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, PA
Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, PA represents clients nationally who have suffered serious financial injury due to negligent and unethical securities and investment behavior. With over 25 years of experience representing various clients, the municipal bond fraud attorneys at Levin, Papantonio, Thomas, Mitchell, Rafferty& Proctor, PA have recovered an excess of $1 billion in settlements and jury verdicts for victims of stock broker fraud and other personal injury causes. Learn more about the municipal bond fraud law firm by visiting: http://www.MunicipalBondFraud.com.