Former Merrill president wins $1.2M award

The good news for Ahmass Fakahany, a former top executive of Merrill Lynch & Co. Inc. is that March 24, a Finra panel awarded him $1.2 million in an arbitration claim against his former firm
APR 11, 2011
The good news for Ahmass Fakahany, a former top executive of Merrill Lynch & Co. Inc. is that March 24, a Finra panel awarded him $1.2 million in an arbitration claim against his former firm. The bad news is that he was seeking $70 million. Mr. Fakahany, formerly chief financial officer of Merrill Lynch and later co-president, helped oversee risk management at the company as losses began to mount on subprime mortgages and bonds in 2007. He resigned from Merrill Lynch in January 2008 when John A. Thain came in to take over the troubled firm. Ultimately, the Wall Street firm suffered from huge write-offs related to mortgage-backed bonds. Mr. Fakahany filed the arbitration claim against Merrill Lynch in December 2008, pressing his former employer to pay him for work and make good on promises. In an interview with Bloomberg, John Orsini, an attorney representing Mr. Fakahany, disputed the $70 million figure that arbitrators listed on the order. The Financial Industry Regulatory Authority Inc. panel's decision was “totally incorrect,” he said, declining to elaborate or comment on the ruling. “This was a compensation dispute that predated Bank of America [Corp.'s] acquisition of Merrill Lynch,” William Halldin, a BofA spokesman, said in a statement. The arbitration award provided no details of the events that led Mr. Fakahany to file the claim. E-mail Dan Jamieson at [email protected].

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave