Article: Investor advocates accuse brokerages of using stall tactics in arbitration hearings. (Banking & Finance Special Report)

Are investors getting the stall when they seek damages from securities brokerage houses?

Since a landmark 1987 Supreme Court ruling, investors who have financial disputes with their brokers or stock brokerages are compelled into binding arbitration -- there is no recourse through the civil court system.

Generally speaking, the arbitrating body is the National Association of Securities Dealers, an industry-financed body which provides arbitration panels of one to three people to settle disputes between investors and their brokers. Depending on whom one talks to, the NASD arbitrations are generally fair or tainted by industry bias -- but most parties agree the process is ...

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