Mercury News: Analysts Pledge More Credibility. Two industry groups are issuing non-binding “best practices” suggestions on how to make sure analysts work in the interest of investors, not investment banking clients.
The key word, folks, is “non-binding” — another way to say the whole exercise is essentially meaningless.
Look. Wall Street will not clean up its own corruption, not while it remains so profitable.
It’s also becoming apparent that the Securities and Exchange Commission, especially in the current era, won’t bother with this issue in any meaningful way, either. This is so-called “conservative” policy — taking the financial cops off the beat.
So it’s up to investors. Unfortunately, investors have only one rational alternative. They should believe nothing they see or hear from the puppets who pump up stocks to enrich their firms in banking deals while leaving small investors holding the bag.