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Wall Street’s Kangaroo Court Gets a Black Eye

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July 30 (Bloomberg) -- “Sunlight is said to be the best of disinfectants,” the future Supreme Court Justice Louis Brandeis famously wrote in a 1913 article for Harpers’ Weekly, and now, almost 100 years later, there is evidence that Brandeis was right.

On July 9, I wrote a column describing how the Financial Industry Regulatory Authority, Wall Street’s self-policing organization, seemingly out of nowhere fired three arbitrators in the months after a May 2011 case in which they awarded $520,000 to the estate of the late Robert Postell. The finding was against Postell’s former broker, Merrill Lynch, a subsidiary of Bank of America Corp.