thegreatunknown
New member
Edit: Not the last time, but one of the most memorable...
In 2006, I was working for a brokerage and a customer (a daytrader) tried to place a trade but he couldn't because he didn't have the buying power due to a margin call on his account. He then told someone offline that "this stupid n****r told me I don't have the equity to place this trade" and hung up before I could say something.
Well because I was relatively new, from time to time, a principal would listen to calls for any potential trades I'd place and he happened to be listening on this call. Later that day, he called me to his office and explained that he called the customer back to inform him that the company was closing out his account due to abuse and liquidating his shares to meet the call, pretty big loss for the client potentially. The principal told me the client was apologizing saying that he was stressed from trading losses and begging him not to close it because he'll lose trading days etc.
Per NASD rules at the time,a broker-dealer could liquidate shares at any time to meet a call (not sure if FINRA kept this rule). Most firms will give a client three days to meet it by selling their own stock or wiring in money. If they don't the liquidation department will sell any shares in your account they deem acceptable. Because the shares were purchased on margin, the shares replenish the cash at a $0.50/dollar rate. The customer call was for 35k, so the department sold about 70k in stock to meet the call. Bigot took a huge L on that one...
In 2006, I was working for a brokerage and a customer (a daytrader) tried to place a trade but he couldn't because he didn't have the buying power due to a margin call on his account. He then told someone offline that "this stupid n****r told me I don't have the equity to place this trade" and hung up before I could say something.
Well because I was relatively new, from time to time, a principal would listen to calls for any potential trades I'd place and he happened to be listening on this call. Later that day, he called me to his office and explained that he called the customer back to inform him that the company was closing out his account due to abuse and liquidating his shares to meet the call, pretty big loss for the client potentially. The principal told me the client was apologizing saying that he was stressed from trading losses and begging him not to close it because he'll lose trading days etc.
Per NASD rules at the time,a broker-dealer could liquidate shares at any time to meet a call (not sure if FINRA kept this rule). Most firms will give a client three days to meet it by selling their own stock or wiring in money. If they don't the liquidation department will sell any shares in your account they deem acceptable. Because the shares were purchased on margin, the shares replenish the cash at a $0.50/dollar rate. The customer call was for 35k, so the department sold about 70k in stock to meet the call. Bigot took a huge L on that one...
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