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Article: CITIGROUP PLEDGES TO SEPARATE UNITS FIRM HEEDS CALLS TO SPLIT INVESTMENT BANKING, RESEARCH
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- October 31, 2002
- Author:
CopyrightCopyright 2002 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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Responding to a frontal assault on Wall Street by a reform-minded
coalition of state and federal regulators, Citigroup Inc. yesterday
broke with decades of tradition and pledged to separate its
investment banking from its stock brokering and research units.
The move could be the first step toward a settlement between
investment firms and the coalition of regulators pressuring them to
end cozy relationships that allegedly compromised the independence of
research analysts, especially during the late 1990s.
Matthew Nestor, the chief of the Massachusetts Securities Division
who is heading the probe into conflicts of interest at Credit Suisse
First Boston, said Citigroup's proposal "could be a ...