September 19, 1992 |
An arbitration panel issued an exceptionally strong rebuke to PaineWebber Inc., ordering the brokerage firm to pay nearly $2.3 million to five investors because the firm failed to stop "egregious" conduct by a broker. The award was unusual because it included punitive damages, more than $1.6 million, and because the arbitrators sharply criticized the firm and spelled out the reasons for the award.
July 25, 1992 |
The Securities and Exchange Commission has begun an inquiry into whether several of Wall Street's biggest investment houses are failing to weed out stockbrokers who repeatedly cheat individual investors. Seven brokerage firms confirmed Friday that they have received official letters of inquiry from the SEC, which took the action following a series of stories in The Times earlier this month on abuses in the retail brokerage industry.
January 9, 1992 |
The New York Stock Exchange said Wednesday that it imposed its second-largest fine ever--against PaineWebber Inc.--under a settlement of charges that the brokerage victimized retail customers through illegal sales practices nationwide. Although disciplinary actions against brokerages for sales abuses are not uncommon, the Big Board said that PaineWebber's offenses were more extensive than most others and that its senior executives were informed of the infractions but failed to stop them.
October 16, 1991 |
Merrill Lynch & Co., the nation's biggest brokerage, said Tuesday that third-quarter earnings more than tripled as Wall Street continued to rack up huge profits in 1991. Paine Webber Inc. reported that earnings in the July-September period quadrupled. The stock prices of both firms soared in response to the reports. Merrill gained $3.25 a share to $51.375 on the New York Stock Exchange, with 1.6 million shares changing hands in heavy trading. Paine Webber shot up $4.25 to $28.