Corporate & Securities Law

A judge in New York ruled last week that Merrill Lynch & Co. must go to arbitration to pursue a broker for an unpaid promissory note.  New York State Supreme Court Judge Bernard Fried rejected the argument by the issuer of the retention notes, Merrill Lynch International Financial, that it isn't a broker-dealer and is therefore not required to arbitrate disputes with Merrill Lynch brokers.  The broker in the case, Todd Gutkin, left Merrill Lynch in April.  Merrill is bringing a series of promissory note collection cases in New York state courts against brokers who owe money on the retention payments that they received after the merger with Bank of America Corp.

Source: InvestmentNews