Brokers Should Do as Japanese: Repay Clients

There’s been a great deal of coverage lately on Japanese securities firms’ practice of reimbursing clients for stock market losses.

Much to my astonishment, this practice has been viewed with horror. It has been denounced by the government, spurred public apologies by several firms and prompted the resignation of senior officials.

From my point of view, which would certainly be supported by many other investors, this is just another example of Japanese leadership in service to the public. Instead of being discouraged, this practice should be made mandatory at all brokerages.

When I look at the long list of losers that have been foisted on me by America’s leading securities firms, it seems only reasonable that they should take some responsibility for their actions.

Other professionals do. An architect who designs a building that collapses will surely be held accountable. A broker who markets a new issue that sinks without a trace not only keeps the commission but also comes right back with another new issue.

While we are at it, let’s make broker responsibility retroactive. I’d be on easy street.

C. M. DEASY

San Luis Obispo