Deutsche Retracts On WorldCom Research

Deutsche then said that 'our comments regarding WorldCom, Inc appeared in error due to an editorial mistake.' The bank denied that its about face was the result of pressure from investment bankers who were worried about losing lucrative underwriting fees.

Charlie von Arentschildt, Deutsche Bank's head of global markets for the Americas, said that John Tiernay, the analyst who made the original call, was not supposed to be issuing research on specific companies. He is a quantitative and strategic analyst.

Although is it true that the German bank has not been involved as lead underwriter in any of WorldCom's debt sales in recent years, this incident will be at the least embarrassing for Deutsche at a time when there are two major investigations of alleged biased stock research ongoing in the United States.