bankruptcy
Financial planner bankruptcies will be made publicPosted by RJ and Makay on Apr 09, 2012 |
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The Certified Financial Planner Board of Standards announced last Thursday that it would begin to make certified financial planners’ (CFPs) bankruptcies available to the public. The board said it would issue press releases on CFP bankruptcies, making the information available to investors searching the Internet for a financial advisor. It will also post such notifications on the CFP profiles listed on the board’s website.
The CFP Board has found that financial advisor bankruptcies are on the rise. In 1,472 disciplinary cases that the board initiated last year, an estimated 25% of planners under investigation had filed for bankruptcy. In 2011, the frequency of advisor bankruptcies has risen to about one-third of those under investigation.
Lehman Brothers Holdings Inc. unveiled a settlement Wednesday with major financial creditors, reaching an agreement with Bank of America Corp. and Merrill Lynch that will reduce bank claims against Lehman by $7.5 billion. The settlement includes a pledge from the banks to support Lehman’s $65 billion bankruptcy exit plan, according to court papers filed late Wednesday in U.S. Bankruptcy Court in Manhattan.
