Get the E-Commerce Minute Newsletter from the E-Commerce Times » View Sample | Subscribe
Welcome Guest | Sign In
E-Commerce Times TechNewsWorld CRM Buyer LinuxInsider

E-Commerce Times Talkback

ECT News Community   »   E-Commerce Times Talkback   »   Re: Merrill Lynch Agrees To Post Investment-Banking Ties on New Web Site

Re: Merrill Lynch Agrees To Post Investment-Banking Ties on New Web Site
Posted by: Judith Schoolman 2002-04-19 12:49:28
See Full Story

Merrill Lynch and New York Attorney General Eliot Spitzer have reached an agreement that
compels Wall Street's largest brokerage to disclose investment banking ties with companies
its analysts cover and post them in detail on a new Web site. "These disclosures are
necessary to inform consumers and investors of the inherent conflicts of interest at
Merrill Lynch, which we exposed in our submission to the court last week," Spitzer said.

Too late but not soon enough. For ML clients like me who have saved each trading day results of my portfolio, in addition to copying research and recommendation from ML management on stocks within the ML funds, and whose convictions that the ML Advisor's promise of 7+ percent to gain my new retirement account in January 2001, were shattered with a 19 % loss from ML funds. I cannot wait until my funds reach the 1% change fee zone, so I can transfer to another broker. I believed in ML research, so much, that I invested outside of the IRA controlled by my advisor, and lost dearly on 3 of their recommendations. How could you recommend a stock and the very next month, it drops from bad news, and then drops further as it was targeted for a takeover and I was offered a price 40% less than my cost basis. I have more, but not to bore you, I hope that all is disclosed and disclosure also comes on bonuses and commissions that Advisors receive for pushing funds and/or stocks in ML funds.

Re: Merrill Lynch Agrees To Post Investment-Banking Ties on New Web Site
Posted by: kathleen.mccahill 2002-04-19 13:11:16 In reply to: Judith Schoolman
Wow, full disclosure. Which is actually great news for the investment community as well as the company. Merrill Lynch has a pretty good reputation, so this is terrific advertising backed by making good on its claims. A smart move? you betcha. What could have turned into a major fiasco and subjected the company to torturous lawsuits and defecting customers, has been a good faith action on ML's part. The company has effectively negated the analysts' greed factor by employing the "we all have dirty laundry don't we" syndrome and "we want to show ours".
The investors are not given a choice in the matter, they have already lost their money and without being given much time to regroup from that loss, are given a token of specialty - disclosure.
Cynical, sure, but the analysts that pumped up the stocks are to a large degree money-savvy. The cash register was ringing overtime, but we have all learned from this - short-term gain is short-lived, and the analysts after all don't know more
than anyone else when it comes to the volatility
of the stock market.
Jump to:
Which review rating influences you most when researching a business?
5 Stars - I want to know what others found amazing.
4 Stars - I want to find out why it's liked for the most part, but not without faults.
3 Stars - I want to understand why the business is neither loved nor hated.
2 Stars - I want to learn why the weaknesses outweigh the strengths.
1 Star - I want to know why anybody says they are completely dissatisfied with the business.