Former Brokers Say JPMorgan Favored Selling Bank’s Own Funds Over Others

After all the negative publicity these bannks and financial services firms have received over the last ficve years. Why does the public continuously look to them for conflict free advice? If these institutions do not agree, in writing, to be a true fiduciary to you,

NEW YORK, NY - MAY 14:  Flowers stand in front...
NEW YORK, NY - MAY 14: Flowers stand in front of a Chase sign at a bank branch inside the JPMorgan Chase headquarters on May 14, 2012 in New York City. Following a $2 billion trading blunder, JPMorgan Chase's chief investment officer Ina Drew retired and will be succeeded by Matt Zames, an executive from JPMorgan's investment bank. At least two others are also being held accountable for the mistake. (Image credit: Getty Images via @daylife)

run do ont walk away from them.

These financial advisers say they were encouraged, at times, to favor JPMorgan’s own products even when competitors had better-performing or cheaper options. With one crucial offering, the bank exaggerated the returns of what it was selling in marketing materials, according to JPMorgan documents reviewed by The New York Times.

The benefit to JPMorgan is clear. The more money investors plow into the bank’s funds, the more fees it collects for managing them. The aggressive sales push has allowed JPMorgan to buck an industry trend. Amid the market volatility, ordinary investors are leaving stock funds in droves.

Brokers at banks are under tremendous pressure to meet their sales quotas. Enough said.

Please comment or call to discuss how this affects You.

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