This is my interpretation of the NYTimes article:
Putnam has successfully grown Terra Nova and ARCA;
They may be lending unsecured funds to customers under a margin call, which can be dangerous if not well monitored and controlled;
The 'public face' of MBTrading, Ross Ditlove, is not registered, and should be.
The article neglects to mention what the firm does 'right', which is operate under daytrading rules, unlike most other internet brokers which operate under more generous investor rules. (This is the source of the convoluted margin rules on overnight positions.) I'd be worried about that if I were, say, Etrade.
Neither issue is a show stopper for me. They should stop the first practice (which, BTW, I think I was a beneficiary of in my first week trading when I misconstrued the O/N rules); Ross should get registered.
Somehow the article is being treated as confirmation of scanshift's accusations -- I don't see that at all. |
