Holy crap this can be fun sometimes. Let’s see, customers have filed numerous arbitrations against their firms for mortgage-backed securities. Charles Schwab may have been among those firms, I haven’t taken a deep dive into the FINRA Awards database or Brokercheck, but I would venture a guess that there’s at least claim.

So Schwab thinks it’s been lied to, Investment News reports. So what does Schwab do? It files suit alleging misrepresentation against a number of the big players on Wall Street.

Notice that I said “suit” and not “arbitration.” Apparently someone at Schwab missed that part of the FINRA Constitution and Rules. So the first move should be to compel arbitration. I’m guessing that this is a strategic move to scare the broker/dealers into a settlement rather than face exhaustive discovery, either in court or arbitration, against a well-funded and angry opponent.

It seems like Claimants’ lawyers everywhere may want to see a bouquet of flowers to the General Counsel at Schwab.

That’s the view of one Lawyer from Jupiter, Palm Beach County, Florida. I’m Marc Dobin.