U.S. and State Regulators Join Inquiry of Merrill Internet Stock Analysts

As of April 24th, the Wall Street Journal and the New York Times are reporting that State securities regulators have formed a task force to study the issues raised by New York Attorney General Eliot Spitzer in his investigation of Merrill and their former star analyst Henry Blodget.

Spitzer has been investigating Merrill for about a year trying to determine whether they used stock ratings and research to reward or punish companies at the expense of retail investors. His office released an affidavit summarizing the findings several weeks ago in which he included internal notes from Merrill analysts that appeared to show that their private opinions were in direct conflict with the glowing reports issued to the investing public.

This investigation may culminate in fines against Merrill and/or the establishment of some type of nationwide settlement.

The stocks mentioned in the report are: