In Focus

n what is a second high profile investigation of brokerage firms' sales practices, Salomon Smith Barney is the subject of a New York Stock Exchange investigation regarding the way the firm handled accounts of Worldcom employees who held stock options. The investigation undoubtedly was triggered by the numerous complaints filed against the firm by Worldcom employees. From the other side of the aisle, two former Salomon Smith Barney brokers also are suing the firm over the manner in which it settled some of those complaints.

Recently, the NYSE launched an investigation as to how effectively brokerage firms supervise their brokers, when the broker also acts as the resident branch office manager.

— James J. Eccleston
FinancialCounsel.com