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Its customers' assets held in retail accounts have declined as stocks struggle.
What due diligence did the bank do to be sure that customers' assets existed, and were safe?
In doing so, they violated the most basic obligation of any brokerage firm, which is to protect customers' assets.
A stockbroker, for example, relies on a custodian to keep its customers' assets secure.
They then used the customers' assets as a "personal piggy bank" to finance other Refco businesses, the trusts said.
The bank also reported a significant inflow of customers' assets in its private banking unit, something that surprised analysts.
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Flohr said VistaJet and XOJET will continue their models of offering customers asset light solutions via jet card programs and on-demand charter.
The SEC alleged in its administrative filing that from January to August 2007, Wells Fargo sold customers asset-backed commercial paper that was structured with risky mortgage-related securities including collateralized debt obligations.
It's about knowing your market, customer, assets and partnerships.
The Cantor Fitzgerald division manages about $3.4 billion in customer assets.
The weak inflow of new customer assets in the quarter disturbed him, Mr. Grübel said.
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