JPMorgan Accused of Double Standard on Broker Poaching
Steven Kramarsky, who has litigated against JPMorgan, says that as the number of protocol-related disputes has grown, industry insiders have started to grumble about the need for a “Protocol 2.0.”
Until then, there may be little clarity about who falls under the protocol and who doesn’t, giving way to legal action and other maneuvers by banks like JPMorgan to head off departures.
Last year, six advisers left JPMorgan in Morristown, New Jersey, to join Morgan Stanley and invoked protocol protection. JPMorgan went to federal court to request a temporary restraining order. It argued that the advisers weren’t protected by the protocol and claimed breach of contract and misappropriation of trade secrets. The judge rejected its request.