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To: Dealer who wrote (51511)	5/16/2002 11:28:16 AM
From: stockman_scott	Read Replies (1) \| Respond to of 65232

Schwab Unveils New Investment, Research Approach Thursday May 16, 9:17 am Eastern Time NEW YORK -(Dow Jones)- Responding to concerns about the quality of Wall Street research, Charles Schwab Corp. (SCH) announced a plan to offer ratings on more than 3,000 U.S. stocks that it says will be free from conflicts of interest. The move comes as investors and a number of regulatory agencies have increasingly asserted that Wall Street research and ratings are mired in a quid pro quo relationship with companies' investment banking operations. The discount financial-services firm said in a press release Thursday that a new service called Schwab Equity Ratings would provide an objective system for rating the stocks. The analysts are paid a salary and a bonus that's tied to the performance of their ratings, a Schwabb spokeswoman said. "Investors are confused and disillusioned. They need to invest for the future, but after the dot-com bubble, Enron and other recent events, they have deep misgivings about the conflicts inherent in the way some traditional brokers deliver research and advice to individual investors," Chairman and Chief Executive Charles Schwabb said in the statement. Concerns about research have taken on new urgency in recent months as New York Attorney General Eliot Spitzer opened a wide-ranging probe into Merrill Lynch & Co .'s (MER) research practices.