Press
Goodbody Stockbrokers is planning to open a bonds desk, marking its return to fixed-income trading since 1997. Now that Goodbody is part of the Kerry-based Fexco financial services group, it is keen to re-establish itself in bonds.
Goodbody continually issued "Buy" recommendations for its then parent, notwithstanding its worsening financial position, and used Client Discretionary mandates to invest their monies in Allied Irish Banks at the start of the 2008-2011 Irish banking crisis in November 2008, which generated adverse comment. When asked if they had ever issued a sell notice on AIB, a Goodbody spokesman said "I don't know if we even keep records going back that far".
A whistleblower revealed that the broker illegally traded AIB Shares, through offshore blacklisted tax havens Nevis and Vanuatu.
A Northern Ireland property fund which was launched by Goodbody in 2005 had its value of investments written down to nil in 2009. A solicitor said the fund invested in residential property, even though his client had said she did not want any exposure to residential property. The stockbrokers made £1.1 million in commission from the £27 million put up by investors at the outset.
The broker was ridiculed publicly in 2007 after it told its clients to buy the stock of an American pharma stock at $3.09 and gave it a price target of $5.70. Less than a week later, it was recommending that the same clients sell the same stock when it was trading at $0.83.
In May 2010 the EU began investigating claims that AIB misused state aid by attaching conditions to loan deals, unfairly affecting competition in the Irish stockbroking market but benefiting Goodbody.
Read more about this topic: Goodbody Stockbrokers
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