Brokers Lose Bid To Block Fed's Pay Rule Change

Law360, New York (March 31, 2011, 2:04 PM EDT) -- A federal judge in Washington refused Wednesday to prevent the Federal Reserve from implementing a rule that will bar brokerages from paying officers on commission, saying the Fed's goal of protecting consumers outweighs potential harm to the industry.

Judge Beryl A. Howell of the U.S. District Court for the District of Columbia denied a pair of motions seeking temporary restraining orders and preliminary injunctions ahead of the rule's impending April 1 effective date.

The judge said the plaintiffs — the National Association of Mortgage Brokers and...
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