I would add to the story from the financial times today. “Merrill Lynch has become the third leading investment bank to be hit by an allegation of securities fraud as part of the settlement of conflicts of interest on Wall Street. Citigroup’s Salomon Smith Barney unit and Credit Suisse First Boston will also face a finding of fraud when the final settlement document is published in the next few weeks.”
Also, “A Federal judge rejected efforts by Citigroup’s (C.N) Salomon Smith Barney, Goldman Sachs Group (GS.N) and 53 other investment banks to throw out a securities lawsuit that alleges they rigged hundreds of IPOs. Judge Shira Scheindlin of the Southern District of New York denied the majority of the motions to dismiss filed by 55 banks who underwrote the initial public offerings, and the 309 companies that issued them.”
Power and money may be what started this but if there wasn’t something to it, it would have gotten this far.
I suspect that Mr. Spitzer will appear on a ballot in the near future. 😉