
SEC charges E*Trade, 5 others, for front running - tortilla
http://www.reuters.com/article/marketsNews/idINN0530515020090305?rpc=44
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mdd
The article doesn't fully explain "front running", so here's Wikipedia's take:
(<http://en.wikipedia.org/wiki/Front_running>)

 _Front running is the illegal practice of a stock broker executing orders on
a security for its own account while taking advantage of advance knowledge of
pending orders from its customers. When orders previously submitted by its
customers will predictably affect the price of the security, purchasing first
for its own account gives the broker an unfair advantage, since it can expect
to close out its position at a profit based on the new price level. Front
running may involve either buying (where the broker buys for their account,
driving up the price before filling customer buy orders) or selling (where the
broker sells for its own account, driving down the price before filling
customer sell orders)._

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vaksel
Seems like a very small fine. I'm sure eTrade made a ton more money than the
34 million they were charged.

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gaika
Just think how much they will lose in customer trust because of that. I pulled
everything out today.

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chris11
Yeah. I'm willing to forgive most blunders, and I am not actually investing in
the stock market yet. But when I do I'd highly doubt that I'd ever E trade.

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chris11
They are getting hit hard for this. Their stock has lost over 13% of its value
today.

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falsestprophet
Who do they think is fooled by neither admitting or denying the allegations?

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thinkcomp
I got a letter from the Office of Thrift Supervision today confirming receipt
of my complaint about E*TRADE Bank. Glad to know I'm not the only one who
hates them.

