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Investment Banks To Be Grilled By MPs

Hot on the heels of the New York State Attorney General's investigation into the independence of investment bank analysts, authorities and regulators in the UK are now getting in on the act.

The big investment banks are now to be hauled before a key committee of MPs amid belated concerns that UK investors may also have suffered as a result of making investment decisions based on biased stock research.

The Financial Services Authority (FSA) is also thought to be keeping an eye on the matter.

Members of the Treasury Select Committee confirmed on Friday that they now intended to call senior executives at the main securities houses in order to establish whether there is cause for concern this side of the Atlantic.

The FSA is believed to have looked at this issue last year, but found no further action was required. Events in New York, however, will probably mean that the UK regulator will review the situation.

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