Monday, March 10, 2008

Got Money? Then Protect It!

We've all received the call from the Broker who has a hot tip on a new IPO and they really truly honestly want you to take advantage of this information for the good of you and your family. "Don't miss the boat" they'll tell you. "It's a once in a lifetime opportunity" "Don't you deserve to live the good life?" Who are these people? And if they know this stock is going to take off, why are they calling me? It's like knowing which horse is going to win the race and calling a stranger to convince him to bet on it.

This practice of cold calling by brokers is a legitimate sales tactic as long as they don't mislead you, but who's really policing what they say? The common sense factor hopefully keeps most people from investing a penny from anyone that they've only spoken to by phone or by email.

My point is (finally) that you can check out the people you entrust your money to even in less shady circumstances such as Financial Advisers, Brokers, Banks, and other investment funds. We've listed these FREE (as always) searches on under the category "Investor and Banking Disciplinary Actions".

Check the Background of Your Investment Professional through the FINRA (Financial Industry Regulatory Authority) Broker Check. Here you can search background information on over 660,000 registered brokers and 5,100 registered securities firms. Info on formerly registered brokers and firms is also available." It's a fan-freakin-tastic search for an investor or an investigator. I've found detailed complaint information on investment professionals here many a time. Most people will never know these databases exist and that's the way some shady brokers would like to keep it. Take advantage of it!

Other Investor and Banking Disciplinary action databases listed on Virtualgumshoe include...

Use the FDIC: Enforcement Decisions and Orders link to search for...
  • FDIC-insured state chartered banks that are not members of the Federal Reserve System

  • FDIC-insured branches of foreign banks

  • Officers, directors, employees, controlling shareholders, agents and certain other categories of individuals (institution-affiliated parties) associated with such institution

Use the The Office of the Comptroller of the Currency link to search...

  • National banks

  • Federal branches and agencies of foreign banks

  • Institution-affiliated parties (IAPs), including:
    a. Officers, directors, and employees,
    b. A bank's controlling stockholders, agents, and certain other individuals

I won't list them all here. For more, just go to and view the "Investor and Banking Disciplinary Actions" category.



good blog

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