Stock Research Honest Alaylsis Lacking

It seems that a “highly confidential” memo from Citigroup puts down in hard copy what many of you might have expected about stock analysts from major companies. Basically, the memo states that there are a number of pressures that keep analysts from providing honest research on the companies they cover.

The memo came to light from ongoing litigation filed by a Florida law firm, Babbitt Johnson Osborne & LeClainche. The memo was written in 2002 by John Hoffman, then global research chief for Citi’s Salomon Smith Barney division, to Salomon Smith Barney CEO Michael Carpenter. The memo stated that “implementation and enforcement of clearer and more accurate ratings


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