Merrill Rules Skirt the Chinese Wall Issue

Merrill Lynch (MER Quote) analysts: Be bullish, but tell us about it.

The brokerage giant said Tuesday it will restrict stock analysts' ownership of shares in companies they cover, as part of an effort to ensure objective research. The company said analysts who continue to hold shares will have to disclose their positions on their reports. The moves come as regulators and legislators cast an increasingly wary eye on potential conflicts on Wall Street, where buy ratings are the norm.

But disclosure aside, some industry experts say the real issue is the lucrative investment banking business that is the bread and butter of Wall Street firms. Until Wall Street firms' research and banking functions are truly independent of one another, investors won't have confidence in the analysis they see, no matter how much disclosure the firms offer, analysts say. ...