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SEC charges E*Trade, 5 others, for front running
- vaksel 18y agoSeems like a very small fine. I'm sure eTrade made a ton more money than the 34 million they were charged.
- gaika 18y agoJust think how much they will lose in customer trust because of that. I pulled everything out today.
- chris11 18y agoYeah. I'm willing to forgive most blunders, and I am not actually investing in the stock market yet. But when I do I'd highly doubt that I'd ever E trade.
- ojbyrne 18y agoIt seems to me that class action suits would be next, since customers would have to had to pay more for stocks based on these transactions.
- ggruschow 18y agoI doubt it. E*Trade's traders ("specialists") on CHX & Cinci weren't really making that much.
- falsestprophet 18y agoWho do they think is fooled by neither admitting or denying the allegations?
- chris11 18y agoThey are getting hit hard for this. Their stock has lost over 13% of its value today.
- thinkcomp 18y agoI got a letter from the Office of Thrift Supervision today confirming receipt of my complaint about E*TRADE Bank. Glad to know I'm not the only one who hates them.
- mdd 18y agoThe article doesn't fully explain "front running", so here's Wikipedia's take: (http://en.wikipedia.org/wiki/Front_running http://en.wikipedia.org/wiki/Front_running) Front running is the illegal practice of a stock broker executing orders on a security for its own account while taking advantage of advance knowledge of pending orders from its customers. When orders previously submitted by its customers will predictably affect the price of the security, purchasing first for its own account gives the broker an unfair advantage, since it can expect to close out its position at a profit based on the new price level. Front running may involve either buying (where the broker buys for their account, driving up the price before filling customer buy orders) or selling (where the broker sells for its own account, driving down the price before filling customer sell orders).