People are angry.
Here are the facts: A shopping mall investment trust – Kimco – has come out with a 700 million USD rights issue. In order to pay down debt. Which is an honorable goal.
Now, at the same time an analyst with Merrill Lynch upgraded his advice from ‘underperform’ to ‘buy’.
At the same time we learn that Merrill is also the lead underwriter of this issue.
Is this insider trading?
A conflict of interests?
Since Saturday the blogosphere is filled with rage. Zero Hedge, Seeking Alpha, Naked Capitalism and others are protesting.
This is an old conflict. In order to restore confidence with the public the separation of research and commercial activities –promised for along time – would offer a solution.
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Here are the facts: A shopping mall investment trust – Kimco – has come out with a 700 million USD rights issue. In order to pay down debt. Which is an honorable goal.
Now, at the same time an analyst with Merrill Lynch upgraded his advice from ‘underperform’ to ‘buy’.
At the same time we learn that Merrill is also the lead underwriter of this issue.
Is this insider trading?
A conflict of interests?
Since Saturday the blogosphere is filled with rage. Zero Hedge, Seeking Alpha, Naked Capitalism and others are protesting.
This is an old conflict. In order to restore confidence with the public the separation of research and commercial activities –promised for along time – would offer a solution.
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