Albuquerque Journal (Albuquerque, NM)

Wall Street's Stock Drops on Settlement.(Final)(Editorial)


Once again, typical investors were left holding the bag. While many of the largest Wall Street firms commissioned rosy research to boost favored companies, small investors were heeding advice to buy stocks that analysts privately referred to as "junk."

A landmark $1.4 billion settlement reached last week among 10 top firms and regulators exposed the tainted stock research, going so far as to accuse three firms of issuing "fraudulent" recommendations.

The settlement is a tiny fraction of what these tactics raked in. The fines levied against the two most notorious analysts are likewise dwarfed by the fees they pocketed. …

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