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Lehman Analyst Told To Suppress Negative Research

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http://business.timesonline.co.uk/tol/busi...icle6723512.ece

A former analyst at Lehman Brothers was pressurised into burying a piece of negative research relating to a company the bank was attempting to float on the stockmarket, an Employment Tribunal heard today.

Paul Ryb, a telecoms analyst, claimed a senior banker working on the corporate finance side of the deal specifically told him not to send a potentially damaging research note to institutional clients that were being courted to buy shares in the initial public offering (IPO).

The allegations were made as part of Mr Ryb’s case for unfair dismissal from Nomura, the Japanese bank that took over some of Lehman’s European business when it collapsed last year.

The allegations of unethical behaviour relate to Lehman’s role in the 2005 IPO of Telenet, a Belgian telecoms company.

Mr Ryb, a research analyst employed to provide independent advice to clients, said he was planning to send potential investors in the Telenet IPO an unfavourable research note about a similar business.

He claimed Paul Norris, then Lehman’s industry group leader for telecoms, who was advising Telenet on the IPO, knew this would harm the bank’s attempts to float Telenet and ordered him to suppress it, which he did.

Mr Ryb, 38, made formal complaints about Mr Norris’ alleged behaviour and other alleged unethical practices at Lehman, which like all investment banks is obliged to maintain a Chinese wall between research and investment banking staff.

Mr Ryb's allegations relate to 2005, two years after Lehman and other investment banks promised to separate research and banking after a crackdown by Eliot Spitzer, then New York Attorney-General.

Mr Ryb said his complaints led directly to him being selected for redundancy last year.

Only happy clappy reports allowed, no negativity as that might affect the price and the commission. And some people wonder why we are in this mess.

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Only happy clappy reports allowed, no negativity as that might affect the price and the commission. And some people wonder why we are in this mess.

Its always been like this.

I cant see how things will change for the better.

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Its always been like this.

I cant see how things will change for the better.

Mate of mine used to work at Northern Rock (remember them?) he was always told: "we don't do negative"

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Yes they did, they specialised in negative equity mortgages.

Funny that, he was a specialist in Equity Release lending, the really profitable part of NR. Applecart (whatever happened to him, did he ever get another job?) disbanded the idea, pushing their 125% Together mortgages!

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Where is Confounded when needed?!?!

I would class this as attempted market manipulation i.e. biased researching - doubt it would have worked though as everyone knows it happens and most treat reserach notes with a large vat of salt

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Guest DissipatedYouthIsValuable
Mate of mine used to work at Northern Rock (remember them?) he was always told: "we don't do negative"

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This is what happens when the World gets run by ***** who haven't ever had a good kicking from objective reality.

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This is what happens when the World gets run by ***** who haven't ever had a good kicking from objective reality.

Happy clappers get into management positions, anyone who even contemplates reality is seen as "negative" and over looked.

Where I work is full of people with their heads in the sand and I'm just being negative all the time.

You'll go far in this world if you believe if fairy stories and follow the crowd.

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Happy clappers get into management positions, anyone who even contemplates reality is seen as "negative" and over looked.

Where I work is full of people with their heads in the sand and I'm just being negative all the time.

You'll go far in this world if you believe if fairy stories and follow the crowd.

They are called "YES MEN"

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Just spoke to my friend who worked for Northern Rock (he doesn't go on here!) apparently Applecart surrounded himself with so called "Yes Men". However there was a guy called Bob Bennet (I think that was his name) who warned the board about the risky lending and the sustained levels of borrowed money to fuel what NR called their Virtuous Circle (oh the irony of it as it became the Viscious Circle later on!) - he left!

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