CLIENT STATES HE CAME IN TO SEE FA TO SEE HOW TO GET A BETTER, SECURE RETURN ON THE CASH IN HIS TRUST ACCOUNT. CLIENT INDICATES HE MENTIONED GE CAPITAL "PINES" (GEA), BUT FA RECOMMENDED BANK OF AMERICA PREFERRED (BAC PRE). CLIENT STATES HE WAS ILL ADVISED AND DOES NOT THINK THIS INVESTMENT WAS SUITABLE FOR THE CASH IN THE FAMILY TRUST ACCOUNT. CLIENT IS REQUESTING A REFUND OF HIS ORIGINAL INVESTMENT OF $20,000 PLUS 5% INTEREST.

$5,000.00

$4,693.92

ACCORDING TO FA, CLIENT VISITED HIS BRANCH OFFICE UNSOLICITED AND INFORMED HIM HE WAS LOOKING FOR AN INVESTMENT THAT PROVIDED HIGHER INCOME. FA STATED CD RATES WERE REVIEWED; HOWEVER, THE RATES WERE LOWER THAN THE CLIENT DESIRED. IT IS MY UNDERSTANDING FA DID RECOMMEND THE BANK OF AMERICA PREFERRED SERIES E (BAC PRE) TO MEET THE CLIENT'S NEED FOR HIGHER INCOME. FA INDICATED HE DISCUSSED THE DETAILS OF THE BAC PRE DIVIDEND ALSO REVIEWED THE 52 WEEK HIGH AND LOW STOCK PRICE FOR THE PREFERRED STOCK. BASED ON THIS DISCUSSION, CLIENT AUTHORIZED THE PURCHASE OF 1,000 SHARES OF BAC PRE. OUR RECORDS REFLECT SINCE THE PURCHASE, TWO DIVIDEND PAYMENTS HAVE BEEN CREDITED TO THE CLIENT'S ACCOUNT, ONE ON MAY 15, 2008 IN THE AMOUNT OF $250.00 AND ONE ON AUGUST 15, 2008 IN THE AMOUNT OF $255.56. BASED ON MY REVIEW, IT APPEARS THIS INVESTMENT IS MEETING THE CLIENT'S INCOME NEEDS; HOWEVER, AS A CUSTOMER SERVICE GESTURE, WE ARE OFFERING TO SELL THE 1,000 SHARES OF BAC PRE AND REIMBURSE THE LOSS (DIFFERENCE BETWEEN SELL PROCEEDS AND TOTAL PRICE PAID). CLIENT ALSO REQUESTED INTEREST ON THIS INVESTMENT, HOWEVER, CLIENT HAS RECEIVED THE DIVIDEND PAYMENTS STATED ABOVE; THEREFORE, ANY ADDITIONAL INTEREST REQUEST IS DENIED. CLIENT ACCEPTED OFFER.