During the internet boom, a senior research analyst from Merrill Lynch was inconsistent with his views on a few internet companies. He was negative about them but went ahead to publish more rosy opinions in his analyst reports. He was eventually exposed through his email correspondence with his colleagues. Independence of research team in question Apparently, the research team is not independent in their views and is influenced by the prospect of investment banking deals (SEC COMPLAINT): “Merrill Lynch’s research department provided a service function within the firm and was not an independent profit center. Merrill Lynch funded its research department through firm revenues received from a number of businesses at the firm, including investment banking. Merrill Lynch’s investment banking department generated substantial revenues for Merrill Lynch. Merrill Lynch encouraged Internet research group analysts to assist investment banking activities. Merrill Lynch expected its Internet research group analysts to ......