E-mails have been sought by investigators for the National Association of Securities Dealers in connection with claims that analysts have been issuing biased research to clients.
The New York Times reports that sources close to the investigation have revealed that Salomon Smith Barney was one of the firms that has failed to produce the correspondance.
A Salomon spokesman is quoted as having said: 'Different firms have adopted different approaches to the books and records rules as they apply to e-mails. We believe that we have taken a reasonable approach which has resulted in the retention of many millions of e-mails.'
Under New York state law, a firm that deleted e-mails it should have kept could be charged with falsifying business records. The intentional destruction of e-mails could result in the firm facing a felony charge.
US federal securities laws lay down that brokerage firms must retain electronic mail relating to business for a minimum of three years. It has now been reported by the New York Times that some Wall Street firms are not able to comply with federal requests for e-mail documentation as they have not retained the information.
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