Coral Gables, Florida (Vocus) May 18, 2010
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) comments on trading halt on May 3, 2010, for bank holding company, Eurobancshares, Inc. (“Eurobancshares”) and its banking subsidiary placed into receivership on April 30, 2010. Founded in 1979, under the name of Espanola de Finanzas Trust Company, the bank holding company was headquartered in Hato Rey, San Juan. Recent developments have led to substantial losses for Eurobancshares shareholders. Investors in Eurobancshares should consider what recourse is available to recover their investment losses in Eurobancshares stock held in full-service brokerage accounts. 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. For investors who accumulated shares in Eurobancshares, the recent developments represent a financial set back.
For many investors, Eurobancshares stock represented a long term holding acquired through investment, inheritance or as a founding member. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice concerning risk management strategies for concentrated stock positions. When an account is concentrated in a single stock position, it is considered suitable to recommend the implementation of risk management strategies to protect the value of the concentrated position. Brokerage firms are required to supervise the activities in brokerage accounts, losses from securities concentration can be attributed to the failure to adequately supervise the stockbroker and the brokerage account. 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 $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (888) 834-2171 and ask for Ben Fernandez, Esquire.
# # #