Tag Archives: Brokerage Negligence

Losses from Vanguard Website Freeze

If you suffered losses from the inability to access the Vanguard website on October 10, 2018, please call 1-866-817-0201.  Initial consultation with a private attorney is free.

On October 10, 2018, the Dow Jones industrial average lost more than 800 points, over 3%, in the course of the trading day.  Certain Vanguard investors were unable to take action to protect themselves.  This is because the website access that so many Vanguard investors rely upon to protect their savings malfunctioned.  The investors were left helpless to watch the dramatic decline with the inability to take action.

In statements from Vanguard, a “network connectivity issue” denying clients to access Vanguard “via the web or phone.”

NYSE pic 2

Investors unable to access markets via Vanguard as brokerage lets down investors for second time this year.

Website access issues started at 6 am Eastern on Wednesday, October 10, 2018, and were “intermittent and periodic.” Vanguard says it is “working as quickly as we can to restore full access and will provide updates as they become available,” and it apologized for the inconvenience.  However the apologies do not compensate those relying on the site and Vanguard’s competence in managing the site.

This is not the first time this has happened to Vanguard.  In fact, it is not the first time this year that the brokerage failed to properly maintain connectivity with its clients.  On February 4, 2018,  the Dow suffered a similar drop.  Investors lost the ability to protect themselves, in addition to missing on buying opportunities.

The notice to Vanguard from the earlier incident should have put it on notice of the problems with its system.  While other brokerages were able to make sufficient changes, Vanguard was not.