No. of Recommendations: 1
We can probably close this board now.

Two of the booming dot-com age stellar analysts have been hung out to dry:

Henry Blodget, whose bullish research at Merrill Lynch came to symbolise the excesses of the hi-tech bubble, will pay fines of $4m and agree never to work in the industry again.
Mr Grubman will pay $15m in fines for hyping telecoms stocks, notably WorldCom, at a time when their fortunes were crumbling. He was also barred from the industry for his lifetime. Neither Mr Grubman nor Mr Blodget was required to acknowledge guilt in their cases.

Maybe not, but we all know they are.

Meanwhile, the industry takes some hard knocks:

Wall Street accepted harsh and humiliating punishment for sins of greed and fraud last night as federal regulators unveiled the final details of a sweeping $1.4bn settlement with 10 leading brokerage houses and announced life-time bans from the industry on two star analysts of the late-Nineties hi-tech boom.

The landmark settlement involved the largest financial penalty ever collectively levied against financial institutions in the United States.

The greatest fines, of $200m each, were imposed on Citigroup's Salomon Smith Barney, Credit Suisse's CSFB and Merrill Lynch.

The other banks involved in the settlement were including Morgan Stanley, Goldman Sachs, Lehman Brothers, Bear Stearns, UBS, JP Morgan Chase and US Bancorp's Piper Jaffray.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.