Whistle-blowers, truth-tellers and fraud-spotters pay a miserable price on Wall Street, BusinessInsider writes. They are vilified. They are fired. Sometimes they are even sued. Instead of being sought after, they become persona non grata.
Recently, BusinessInsider's reporter caught up with David Maris, a one-time star pharmaceutical analyst for Bank of America who became embroiled in one of the most notorious bull/bear battles of the last decade. His story encapsulates just how broken Wall Street culture is.
In 2003, Mr. Maris put out a sell report on Biovail, a Canadian drug company. He fixed on the company's bizarre explanation of why it had missed its earnings estimates: a truck carrying a supposedly huge amount of medicine crashed at the very end of the quarter. Mr. Maris detailed why this was wildly implausible. Desperate to deflect the attention, Biovail took the offensive. It sued Mr. Maris and Bank of America in early 2006. It also sued SAC Capital Advisors, the hedge fund, and Gradient Analytics, an independent research firm, claiming a giant conspiracy to drive down its stock price with false reports….
You can't stop now. Read the rest at:
http://www.businessinsider.com/this-analyst-was-punished-for-blowing-the-whistle-on-wall-street-2011-6
No comments:
Post a Comment