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To: Victor Lazlo who wrote (58910)	4/10/2002 11:08:25 PM
From: bambs	Read Replies (1) \| Respond to of 77400

Probe of US analysts widens beyond Merrill By Lina Saigol in London and Joshua Chaffin in New York Published: April 9 2002 19:52 \| Last Updated: April 10 2002 19:54 The New York attorney-general has widened the investigation into the independence of Wall Street analysts, ordering several other investment banks to hand over documents relating to the probe. Eliot Spitzer, the attorney-general, is understood to have ordered several investment banks, including Credit Suisse First Boston and Morgan Stanley, to disclose documents that could reveal possible conflicts of interest between analysts and investment bankers. The attorney-general on Tuesday left open the possibility that criminal charges could be laid against banks and analysts. "The entire range of possibilities is there," he said. The action would depend partly on the parties' cooperation and any new evidence uncovered, he added. He is now understood to be working with the Securities and Exchange Commission, the financial regulator, on the matter. Mr Spitzer on Tuesday night confirmed that his office had sent subpoenas to other Wall Street banks and said that they were "well into" an investigation that began last July. "This is a treasure trove of irrefutable evidence," he said. Jacob Zamansky, a New York securities lawyer who has represented shareholders against brokerages, said the attorney-general was likely to press the case further. "I think it's a case where we might see criminal charges and possibly jail time for conflicted analysts," he said. "It would send a strong message." On Monday, Merrill Lynch, the world's biggest brokerage, was accused by the attorney-general of privately disparaging companies while publicly telling investors to buy the shares. Merrill, along with other investment banks, has come under fire from regulators and investors for giving positive stock recommendations in the hope of securing fees for helping companies sell stock to the public and advising on mergers. Many banks have subsequently reformed their research practices, including imposing restrictions on analysts' dealing in the stocks they cover. Mr Spitzer ordered an investigation into Merrill Lynch after receiving several complaints from investors about stock recommendations. More than 30,000 e-mails were subpoenaed by Mr Spitzer and they reveal in graphic detail the extent of the potential conflict of interest. They include references to companies such as InfoSpace, a company that syndicates internet and wireless content, as being a "piece of junk." Henry Blodget, Merrill's high-profile internet analyst who left the bank last year, had been bullish on InfoSpace even as the stock started to fall from its peak of $132 in March 2000. On Tuesday, the stock was trading at $1.46. Mr Spitzer on Tuesday pointed to a wide range of legal remedies. "The mission here is to craft a settlement that will eradicate the conflicts of interest that we believe are endemic," he said. Mr Spitzer had been in negotiations with Merrill for two months prior to making the information public. During this time, he asked Merrill to spin off its research division as a separate company, but this was rejected by Merrill. Mr Spitzer subsequently conceded that Merrill had legitimate concerns about doing this. Mr Spitzer also accused Merrill of paying its research analysts to recruit new investment banking customers. "Merrill compliance in this area was a joke," he said. "It was a paradigm in this industry for what should not be done." Merrill insists that it has done nothing wrong and that its e-mails have been taken out of context. In a strongly-worded statement, Merrill said: "There is no basis for the allegations made 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." Merrill claimed that the e-mails had been "taken out of context". Mr Spitzer is trying to force Merrill to add "health warnings" to its published research to point to possible conflicts of interest. Merrill has appealed against the move and has won a stay until 5pm on Thursday.

To: Victor Lazlo who wrote (58910)	4/10/2002 11:11:54 PM
From: bambs	Read Replies (1) \| Respond to of 77400

victor...look at the charts... look at the tech crap you've been pumping for over a year. look at my picks over the last year... you hide like a slug and then wait for gold to pull back and have a laugh...look at the charts, man! just take a look at them...what are you talking about..you probably can't bare to look at those sweet charts and realize how much money i have made over the last year while you have rode tech into the dirt. I hate to say it but...i told you so..it's not like you weren't warned...you only have yourself to blame for not doing your DD and buying into quality as the tech bubble started pop. bambs