Embarrassing E-mails Possible At Stanley

Purcell confirmed that the firm's analysts did work to high ethical standards, but added that some embarrassing material may be uncovered bearing in mind the scope of the investigation into biased research allegations currently being conducted by New York state attorney general Eliot Spitzer.

Purcell is quoted by Reuters as having told investors at a financial services conference hosted by Goldman Sachs that, although he does not expect any embarrassing material to emerge, 'when you get into a million e-mails it becomes a challenge.'

Morgan Stanley is now one of a number of Wall Street firms being probed by Spitzer. It has recently revamped its research department to simplify its ratings system.