[DOWNLOAD] "Lynch v. Brooks" by United States Court of Appeals for the Fifth Circuit # eBook PDF Kindle ePub Free
eBook details
- Title: Lynch v. Brooks
- Author : United States Court of Appeals for the Fifth Circuit
- Release Date : January 14, 1977
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 50 KB
Description
Essentially this case may be summarized as one where a commodities broker extended credit - over-extended that is - to a sophisticated commodity futures investor who at all times possessed knowledge of his deficient margin account status and who now contends he should not be required to pay back any remaining indebtedness because the extension of credit violated a rule or regulation of the Chicago Board of Trade. To adopt such an argument would permit commodity futures investors knowingly to accept extensions of credit from a broker which violate the Board of Trade's rules or regulations and repudiate losses that ensue or accept profits that follow. The only risk to the investor would be his initial deposit in a margin account, ""initial margin"", which represents only a fraction of the potential losses or hoped for profits. We do not accept this position and affirm on the basis of the District Court's opinion, Brooks v. Merrill Lynch, Pierce, Fenner & Smith, Incorporated, N.D.Tex., 1975, 404 F. Supp. 905. In 1964, Brooks (Investor) initially opened a commodities margin account1 with Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch) so he could buy and sell commodity futures contracts for investment purposes. Unlike many, Investor was not a speculator or dilettante. Rather, he has in general great business acumen and possesses in particular extensive knowledge about commodity investing.