I thought this was an interesting story. Really gives credence to Phil and Joann’s argument that fiduciary responsibility is needed on Wall Street.
Best-selling author Patricia Cornwell was forced to sue her Wall Street-based financial advising firm for negligence in mismanaging her multi-million dollar portfolio. Cornwell claimed in court that the advisors managing her money put her in investments that were all but certain to lose cash. She also argued that these analysts deliberately placed her in certain investment vehicles–many with poor track records–that profited them, but never Cornwell. A judge agreed with the author and awarded her $51 million in damages.
Maybe if enough investors begin holding their financial advisers responsible for their losses, there might someday be change in the industry.