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Non-Tech : TBFC - Telebanc Financial Corp.
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To: Tim MacLean who wrote (148)5/17/1999 11:46:00 PM
From: badspotty  Read Replies (2) of 272
 
R.E. Van Kasper. This is a letter I wrote to several agencies and editorialists concerning what I consider poor ethics.

To whom it may concern,

I ran into a situation today that shocked me. An analyst came out and initiated coverage on Telebanc Financial with a sell. It's very disproportionate with the other ratings by Merrill, Goldman, Legg Mason, and BankBoston. I looked up the analyst and found it was FS Van Kasper vkco.com . I found that FS stands for First Security (FSCO), a branch bank. I then found that they have a branch and Van Kasper offices in an area that Telebanc has been heavily marketing recently. The release also corresponded to the appearance of Telebanc's CEO on CNBC today.

I went to their page firstsecuritybank.com and found them to be direct competitors with Telebanc including offering Internet banking. It's like McDonald's buying a food analyst and slamming Burger King. I wonder about the ethics of this. I went through FSCO's insider sales and found that in the past they have traded in securities Van Kasper covers. No mention of Telebanc trading though.

I contacted Telebanc Investor Relations via e-mail and was told that, "The other thing to note is that the person who issued his report with very little contact / knowledge about TBFC. He spent very little time trying to get to know us as the other research analysts did."
And, "As far as the web site. It does look like they offer some similar products. Let's hope that this did not persuade Mr. Runnfeldt one way or the other."


Besides costing me some money, this also offended me. I would be interested in pursuing this and making some attempt to publicize this manipulation.

Thank you,
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