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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: ayn rand who wrote (9605)	4/8/2002 4:29:38 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

Merrill Lynch Statement On Action By N.Y. Attorney General NEW YORK--(BUSINESS WIRE)--April 8, 2002--Merrill Lynch (NYSE:MER) today issued the following statement: There is no basis for the allegations made today by the New York Attorney General. His conclusions are just plain wrong. We are outraged that we were not given the opportunity to contest these allegations in court. We are confident that a fair review of the facts will show that Merrill Lynch has conducted its research with independence and integrity. We have been a leader in practices to assure the independence of our highly regarded research group. The allegations reveal a fundamental lack of understanding of how securities research works within the overall capital raising process. They cite a limited number of employee emails, taken out of context, as "proof" that investment banking had undue influence in determining research ratings. In fact, these emails prove nothing of the sort. Emails are only one piece of a continuous conversation, isolated at a single point in time - not the end conclusion. The emails in question show that there was normal give and take as well as vigorous debate among analysts as they assessed different companies. These kinds of interchanges are customary and appropriate. Analysts consider views from a number of different sources, including the companies they are covering and the investment bankers who work with those companies, before drawing independent conclusions. This process is followed throughout the industry and is part of what has made our capital markets the best in the world. As with oral conversation, emails may include ill-chosen words and offensive language, but this does not add-up to evidence of wrongdoing. In the specific case of GoTo, for example, the Merrill Lynch analyst's downgrade on June 6, 2001 not only was the right call, it was exactly the opposite of what the investment bankers would have preferred. Every witness including the analyst has testified under oath that the analyst had no advance knowledge of any pending investment banking mandate, and investors who heeded the downgrade would have benefited. In claiming harm to investors, the action completely ignores the fact that virtually all internet stocks Merrill Lynch covered were assigned the highest risk rating - suitable only for investors with "strong stomachs" who could tolerate the potential for extreme price volatility. The company's lead internet analyst repeatedly and publicly warned that a substantial majority of public internet companies would never make money and would disappear, and that investors should commit only a small amount of their total portfolio to a diversified basket of stocks which they were prepared to hold long-term. The final irony of this situation is that Merrill Lynch has been a recognized leader in establishing policies and procedures to protect the integrity and independence of its research function: -- Our Research Department does not report to investment banking or equity capital markets. This is a pioneering industry structure that has been in place for some two decades. -- Research analyst compensation is based on broad factors and is not tied directly to the success of investment banking transactions. -- Merrill Lynch was the first major firm to prohibit analysts from purchasing stocks that they cover, and has never allowed purchase of "pre-IPO" shares. -- Merrill Lynch states prominently on the front page of its research reports that it may have business relationships with the covered company. -- Most recently, Merrill Lynch instructed analysts to go beyond pro-forma reporting in considering a company's financial performance and prospects. As a global investment bank, Merrill Lynch plays an integral role in the capital raising process. We help launch and finance public companies that provide essential goods and services, create jobs, and contribute to economic growth. Every day we effectively balance the interests of companies wishing to raise capital on the best possible terms, with those of investors seeking opportunities commensurate with their tolerance for risk. Our research department has operated with integrity over many decades, helping clients and their financial advisors assess opportunities in the market and benefit from them. "Focus One" stocks, a basket of those most highly recommended by our analysts, has out-performed the S&P 500 on a quarterly, one-year and five-year basis. Our reputation for integrity, established over many years, is very important to us. We protect it aggressively. This includes defending ourselves when we are charged unfairly with wrongdoing. We believe these allegations are baseless, and we will defend ourselves vigorously. Merrill Lynch is one of the world's leading financial management and advisory companies with offices in 38 countries and total client assets of approximately $1.5 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions, and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. For more information on Merrill Lynch, please visit www.ml.com CONTACT: Merrill Lynch James Wiggins, 212/449-7280 James-Wiggins@ml.com or Timothy Cobb, 212/449-9205 Timothy-Cobb@ml.com SOURCE: Merrill Lynch Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com 04/08/2002 16:05 EASTERN

To: ayn rand who wrote (9605)	4/8/2002 4:35:51 PM
From: StockDung	Respond to of 19428

NY AG claims Merrill issued misleading stock picks NEW YORK (Reuters) - The New York State Attorney General on Monday said Merrill Lynch & Co. issued misleading stock picks and it has sought a court order to force the giant Wall Street firm to reveal conflicts of interest between its research analysts and investment bankers. Merrill, like other Wall Street firms, has faced a storm of criticism after analysts like former leading Web analyst Henry Blodget touted technology stocks that later cratered. Blodget left Merrill at the end of last year. At issue is whether Wall Street's research analysts fail to criticize companies they monitor for fear that their firms will lose lucrative investment banking and advisory business surrounding the issuance of stocks and bonds. A spokesman for Attorney General Eliot Spitzer's office declined to name a particular analyst or stock in the probe. The state's attorney general's office has been investigating how Wall Street conducts its research. Last July, Merrill paid $400,000 to settle allegations that Blodget's overly upbeat research caused a client to lose a bundle of money. The plaintiff in this arbitration case originally asked for $10.8 million in damages and losses. The brokerage house -- along with rivals Morgan Stanley and Credit Suisse Group Inc.'s Credit Suisse First Boston arm -- also took steps to limit analysts' ownership of stocks they follow. Morgan Stanley analyst Mary Meeker, once dubbed the "Queen of the Internet" for her bullish research, also has been named in lawsuits alleging she gave biased research on Internet companies eBay Inc. and Amazon.com Inc. 04/08/02 14:57 ET

To: ayn rand who wrote (9605)	4/8/2002 4:38:19 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

3:45pm 04/08/02 Att. Gen could seek MER criminal penalty By Julie Rannazzisi The spokesperson for Attorney General Eliot Spitzer Juanita Scarlett said the investigation into Merrill's practices took 10 months told CBS MarketWatch.com that while it's a civil penalty, the Attorney General would not rule out criminal penalties if Merrill Lynch does not comply with the court order. "We received a court order preventing analysts from ratings stocks that do not accurately reflect their opinion on that stock," Scarlett said. "We expect them to comply fully."