NationsBank Corp. of Charlotte, N.C., is being sued for deceptive sales tactics by three former brokers from its NationsSecurities affiliate. the Washington Post reported Friday.
The suit seeks millions of dollars in damages for the brokers, who claim they were forced out of their jobs after complaining about the practices.
The suit claims that employees of the bank and the brokerage failed to tell customers that investments sold in bank branches were not insured by the Federal Deposit Insurance Corp., as required by banking regulations. The suit also claims that brokers were given confidential information about Nationsbank customers.
Similar complaints have been made in two suits now pending against NationsBank in U.S. district court in Tampa.
The Post reported that the suit was filed with the National Association of Securities although a NASD spokesman said the group has not received it. NationsBank has said it believes the claims are without merit, and that its brokerage affiliate, a joint venture with Dean Witter, Discover & Co., operates properly.
Bank regulators have said they are investigating the claims. -- Barton Crockett