Monday, April 19, 2010

Goldman Sachs, Or Sacks Of Gold

I see where there is a lawsuit against Goldman Sachs based partially on the fact that, gasp, they didn't always have their customrers best interests at heart. 

Well gosh, isn't that a shock.  Some of you may remember I post I made back in 2009 touching upon this very subject.  It dealt with a notice I received from Banc of America who had taken over Quick & Reilly but before they bought Merrill Lynch.  BAI is Banc of Americal Investment Services Inc.

"Because BAI receives revenue sharing payments based on the amount of sales of, and assets invested in, annuities of Branch Access Annuity Companies and mutual funds of Branch Access Fund Families, BAI has a financial incentive to promote sales of those annuities and mutual funds, in particular annuities of Branch Access Fund Families that pay the highest revenue sharing rates to BAI."

For those of you who can't quite figure out what they are saying, they are saying BAI will recommend annuities and mutual funds to their customers based upon how much much revenue BAI stands to make, not necessarily based upon how good they may be for their customer.

Now how anyone reading that could ever believe that any brokerage necessarily has their clients best interests at heart should check out the bridge I have for sale.  You can walk to it from my house.

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