Merrill's Apology Cuts Little Ice

10 years ago

Merrill Lynch chairman and chief executive David Komansky made a rare public apology last week. He expressed sorrow for the fact that some of the firm's research analysts had derided stock research in companies that they covered and had issued bullish research on. But Komansky and Merrills have a long way to go, however, if they are to win back the trust of clients.

Komansky's apology rings hollow to many, who feel that financial penalties are not enough to stop the issues raised from happening again. Some investors are demanding that the people involved in misleading the public face long bans.

Merrill announced several changes to its research procedures in November and are thought to be close to revealing a simplification of stock ratings within the next few days. They remain in settlement negotiations with New York state attorney general Eliot Spitzer over the affair and now face an investigation by the US Securities & Exchange Commission. Komansky may have to do more than just apologize.

LEAD BUSINESS STORY: Three Firms Where Staff May Feel A Little Nervous

Spotlight on....