Merrill Looks Set To Revamp Ratings

10 years ago

As negotiations continue betwen Merrill Lynch and New York state attorney general Eliot Spitzer in connection with the high profile probe into conflict of interest claims relating to stock research, Merrill is thought to be close to announcing a revamp of its research ratings.

The firm is thought likely to soon announce a simplification of its ratings to either buy, hold or sell. Merrill is currently negotiating with Spitzer following revelations that the firms analysts may have issued positive stock ratings in order to get or obtain lucrative investment banking mandates.

The firm has already agreed to disclose more information about client relationships in future and Chairman and CEO David Komansky issued a public apology last week about Merrill's past research practices.

Unless settlement terms between Merrill and Spitzer can be concluded, both parties will appear in the New York Supreme Court on May 9th.

In a related story, Merrill Vice Chairman Tom Davis is resigning after 25 years with the brokerage firm. He said that he was leaving to focus on 'other personal and professional goals.'

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