Claims and Bad Faith Law Blog

Fiduciaries, Financial Professionals, Insurance and the Courts.

    "Fiduciary" is a word.  For a report reflecting on the use of that word by some financial professionals, see Ron Lieber, "Your Money Column/Finding Financial Advice in an Age of Bad Behavior" p. B1, col. 1 (New York Times Nat'l ed., "Business Day" Section, Saturday, June 6, 2009).  Some financial professionals have been critical in the past, it is reported, of "other financial professionals who accept commissions and fees from insurance companies and mutual fund firms."  Id.  [Emphasis added.]

    The linked report reflects the filing of a civil action by the Securities and Exchange Commission over alleged kickbacks taken by persons investing other people's money.  Id.

    Courts will work out the length and height of Fiduciary Duties in the final analysis.

See also "Insurance Claims and Issues," at www.insuranceclaimsissues.typepad.com, Category:  Fiduciary Duties.

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Warrants, Wealth, reduction, and Wall Street: Which One for Taxpayers?

    As consideration for loaning large Banks and other financial institutions Federal Taxpayer Funds, i.e., Bailout money, the Banks gave back so-called "warrants" to the Federal Taxpayers.   Actually, the Banks provided those warrants to the Treasury Department which stood in for the Taxpayers.

    The warrants carry with them the right to purchase stock at a certain price, even if the stock price goes higher when the warrants are sold.  This means that the Federal Taxpayers theoretically could earn interest on the Bailout loans made in their name to the Banks.

    "Diamond Jim" Jamie Dimon of JP Morgan wants to give the Bailout Money back now.  There are many announced reasons for that.  With respect to the warrants in particular, here is what he reportedly said yesterday, the 1st day of June, 2009:

    The Federal Government should cancel half of the warrants "out of fairness".

Eric Dash, "Banks May Soon Get Approval to Leave the Bailout Program" p. B1, col. 1 (New York Times Nat'l ed., "Business Day" Section, Tuesday, June 2, 2009).  [Emphasis added.]

    Chutzpah, meet Diamond Jim!

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