set up a unit to sell independent stock research and named a former J.P. Morgan H&Q managing director to run it.
The online financial news provider and publisher of this Web site said the unit will provide "buy, sell and hold" stock research to institutional clients. The research will cover "a wide range of stocks in a number of key sectors, including small and mid-sized stocks that are increasingly overlooked by traditional Wall Street firms."
The move comes as a handful of securities firms are negotiating a deal with regulators to improve the independence of stock research on Wall Street. The talks, which followed the New York attorney general's investigation of analyst conflicts of interest during the 1990s bull market, have reportedly included a proposal to require big Wall Street firms to make the work of independent analysts available to their brokerage clients.
"Creating an independent research company culminates months of working with our institutional clients in addressing their request for more rigorous and insightful analysis," said Thomas J. Clarke Jr., chairman and CEO. "With a brand synonymous with an unbiased, independent view, we at TheStreet.com feel uniquely qualified to launch such an initiative."
TheStreet's new Independent Research Group will be headed by former J.P. Morgan H&Q managing director and senior analyst Paul W. Noglows. The new unit will be a separate company with offices outside TheStreet's corporate headquarters.