J.P. Morgan Tells Analysts To Warn Of A Downgrade

J.P. Morgan Tells Analysts To Warn Of A Downgrade - J.P....

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J.P. Morgan Tells Analysts To Warn of a Downgrade By Wade Lambert and Jathon Sapsford Staff Reporters of The Wall Street Journal March 22, 2001 J.P. Morgan Chase & Co.'s head of European research told his team of analysts they must run all changes in European stock recommendations past both the company in question and J.P. Morgan's investment-banking department. "Both the company and the client banker need to be notified, in advance, of the recommendation change that we plan to make," said the memo, written by Peter Houghton, head of equity research in Europe. "If the company requests changes to the research note, the analyst has a responsibility to either incorporate the changes requested or communicate clearly why the changes cannot be made." The memo, which a company spokesman described as a global policy for the bank and which was previously reported by the Times of London, represents a rare written edict on a practice that raises questions about analysts' independence. Wall Street analysts long have been pressured by corporate clients and their own bankers to shun
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J.P. Morgan Tells Analysts To Warn Of A Downgrade - J.P....

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