Reuters: Gov’t Probing Sell-Side Research

Reuters follows up on The Wall Street Journal report this morning that the Financial Industry Regulatory Authority, a U.S. body that regulates brokerages, is investigating equity research reports by sell-side analysts. The FINRA, as it’s called, sent letters to 10 firms in early November, Reuters reports, asking about how Morgan Stanley (MS), Goldman Sachs (GS), Citigroup (C), JP Morgan-Chase (JPM) and others conducted conference calls, including how many people were present, and whether non-research employees or clients were present, citing two anonymous sources.”