Merrill Agrees To Disclose

Spitzer is now on a role with his analyst probe and Merrill was the first investment bank he accused of possible conflict of interest. He is concerned that bank analysts may well be encouraged to issue biased stock research on clients in consideration for current or future lucrative investment banking business from them.

Merrill have now agreed to the changes after a 10 month probe by Spitzer found numerous instances in which bank analysts privately expressed reservations about companies that the bank was recommending to the public.

Merrills has now agreed to create a web site which will disclose investment banking relationships for companies that the firm has issued research on. The site should be up this week.

The firm will also state on stock reports that investors should 'assume' that Merrill is seeking or will seek investment banking business from the company.

Merrills is also threatened with possible criminal charges by Spitzer for past actions. He is demanding a settlement for investors, who he feels have already been misled by optimistic research.

Settlement talks between the two parties continue in this respect.