Margin Call Lawsuits Expected to Spike

[guru]

https://financialadvisoriq.com/c/2693423/330943/margin_call_lawsuits_expected_spike
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By Miriam RozenApril 1, 2020

Lawsuits from investors who suffered significant losses due to margin calls amid volatile markets are likely to spike, even if a bull market returns, according to lawyer Andrew Stoltmann.

Chicago-based Stoltmann says at least 25 prospective plaintiffs have approached him with their complaints of margin calls made by wirehouses Merrill Lynch and Morgan Stanley and other firms.

One investor had lost $700,000 by the time he called Stoltmann last week.

“He was given 48 hours to meet a margin call. He was getting the money, and then his broker-dealer said they sold his shares,” says Stoltmann, who is also a past president of the Public Investors Advocate Bar Association.

...
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(continued at https://financialadvisoriq.com/c/2693423/330943/margin_call_lawsuits_expected_spike)

 

[NewTraderAdventure]

they prob did him a favor

can surely buy them back cheaper now

 

[tsfx]

What exactly is the problem? If you have the money you can buy it all back, exactly

 

[wrbtrader]

https://financialadvisoriq.com/c/2693423/330943/margin_call_lawsuits_expected_spike
=====
By Miriam RozenApril 1, 2020

Lawsuits from investors who suffered significant losses due to margin calls amid volatile markets are likely to spike, even if a bull market returns, according to lawyer Andrew Stoltmann.

Chicago-based Stoltmann says at least 25 prospective plaintiffs have approached him with their complaints of margin calls made by wirehouses Merrill Lynch and Morgan Stanley and other firms.

One investor had lost $700,000 by the time he called Stoltmann last week.

“He was given 48 hours to meet a margin call. He was getting the money, and then his broker-dealer said they sold his shares,” says Stoltmann, who is also a past president of the Public Investors Advocate Bar Association.

...
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(continued at https://financialadvisoriq.com/c/2693423/330943/margin_call_lawsuits_expected_spike)

Why does the article refer to the example as an investor when most likely it was a trader ?

Too many people trying to get rich since the China outbreak in December 2019 to only get run over by a margin call.

Pay the debt...wait a few months and then buy it all back cheaper or until the U.S. presidential elections because it will be cheaper.

wrbtrader

 

[KCalhoun]

Why don't bad traders take responsibility for their actions?

Dumbasses using margin and losing is Their responsibility not the brokers.

#whinybtches

 

[zdreg]

What exactly is the problem? If you have the money you can buy it all back, exactly

Ever hear of market fluctuations?
OK that went pass you.
Ever hear of tax consequences?
OK that also went pass you.

 

[tsfx]

Ever hear of market fluctuations?
OK that went pass you.
Ever hear of tax consequences?
OK that also went pass you.

i don't really understand what you are saying, that is correct. Maybe you can explain.

 

[gaussian]

Why don't bad traders take responsibility for their actions?

Dumbasses using margin and losing is Their responsibility not the brokers.

#whinybtches

Our society is super litigious. They will sue over everything. These degenerates were in the hole for quite a sum of money and are upset the broker liquidated them. Incredible. What is a broker supposed to do in a market that goes parabolically negative?

 

[ironchef]

they prob did him a favor

can surely buy them back cheaper now

I wish my broker did that for me.

 

[zdreg]

i don't really understand what you are saying, that is correct. Maybe you can explain.

Since you are polite I will assume that English is not your native language and I will explain. When your position is liquidated you must report it to the tax people. You might have to pay taxes.