The Securities and Exchange Commission’s “to do” list got a little longer on Tuesday.
At a hearing on Wall Street analysts before the House subcommittee on financial services — the second such Congressional inquiry this year — acting SEC Chairwoman Laura Unger said that supposedly independent research analysts at nine top Wall Street firms consult with investment bankers on possible deals, including mergers and acquisitions and IPOs. Seven firms admitted that research analysts’ bonuses are tied to banking, and some even let their investment bankers participate in research analysts’ compensation reviews, according to Unger.
