BBC NEWS
BBCi CATEGORIES   TV   RADIO   COMMUNICATE   WHERE I LIVE   INDEX    SEARCH 

BBC News UK Edition
 You are in: Business  
News Front Page
World
UK
England
N Ireland
Scotland
Wales
Politics
Business
Market Data
Your Money
E-Commerce
Economy
Companies
Fact Files
Entertainment
Science/Nature
Technology
Health
Education
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
CBBC News
SERVICES
-------------
EDITIONS
Sunday, 28 July, 2002, 15:17 GMT 16:17 UK
Salomon 'next on Spitzer hit list'
Salomon Smith Barney logo
New York attorney general Elliot Spitzer, fresh from an inquiry into allegations that Wall Street brokerage Merrill Lynch issued misleading stock tips, may investigate Salomon Smith Barney next, according to press reports.

New York Attorney General Eliot Spitzer
New York Attorney General Eliot Spitzer
Mr Spitzer is expected to decide whether or not to bring charges against Salomon Smith Barney early next month, the Observer newspaper reported.

Mr Spitzer is spearheading an investigation into Wall Street analysts, accused of issuing glowing reports on firms they privately disparaged so as to keep open the possibility of gaining lucrative investment banking business from them.

Many investors backed firms which later went bankrupt on the strength of the reports, racking up heavy losses.

Analyst under scutiny

Two months ago, Wall Street giant Merrill Lynch paid $100m to settle an investigation led by Mr Spitzer.

Any inquiry into Salomon Smith Barney is likely to focus on the activities of its star analyst Jack Grubman, who was closely associated with bankrupt telecoms giant Worldcom.

US regulators are already investigating upbeat research reports that Mr Grubman wrote on bankrupt US telecoms firm Winstar Communications.

Last week, a group of independent stock analysis firms formed the Investorside Research Association, which aims to provide investors with an alternative to stock research from Wall Street investment banks.

See also:

17 Jul 02 | Business
08 Apr 02 | Business
24 Jan 02 | Business
18 Oct 01 | Business
21 May 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | World | UK | England | N Ireland | Scotland | Wales |
Politics | Business | Entertainment | Science/Nature | Technology |
Health | Education | Talking Point | Country Profiles | In Depth |
Programmes