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October 27, 2006

TD Ameritrade Makes $8 Million Screw Up With Client Accounts

posted by MR WAVETHEORY at 10/27/2006 08:17:00 AM
I just read that TD Ameritrade Holding Corp. (Nasdaq AMTD) made an $8 million screw up with client accounts last quarter. Ameritrade says their data provider provided them with bad data and their clients were short stock after a stock split - they must have been short alot of shares.

"Expenses before advertising were $255 million for the quarter. The primary difference was in other expense, which was $8 million higher, predominantly as a result of a stock split, where we received inaccurate information from a third party which ultimately resulted in our clients being short shares of the company that split. As an accommodation to those clients who acted on this information, we made them whole, costing us $6 million. Processes have been changed to mitigate this type of risk going forward," Bill Gerber, chief financial officer of TD Ameritrade, said on his company's earnings conference call on October 24th.

When I read that note, I could only scratch my head. Goes to show that this stock market is really moving. I wonder what stock it was.

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