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What happened during the Smith Barney scandal?

April 26, 2017barney happened scandal Smith

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What happened during the Smith Barney scandal?

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Investigations into Salomon Smith Barney began in 2002. The company’s stock ratings were suspected of having been influenced by the desire to win and keep investment banking clients. Jack Grubman, Smith Barney’s top Internet analyst, kept his ratings high on telecom stocks through the telecom bust of 2001. In addition to expressing skepticism over the integrity of Smith Barney’s ratings, investigators questioned why CEOs and directors of Smith Barney’s investment banking clients received IPO opportunities that quickly made them millions.