Article: CITIGROUP PLEDGES TO SEPARATE UNITS FIRM HEEDS CALLS TO SPLIT INVESTMENT BANKING, RESEARCH

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 ...

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