Eric Schneiderman’s determination to follow in Eliot Spitzer’s footsteps (to a point) is bad news for analysts who answer their phones.
As part of a continuing crackdown on what he referred to as “insider trading 2.0,” the attorney general, Eric T. Schneiderman, said he planned to investigate brokerage firms that might have provided early market-moving information to preferred clients.
“We’re looking at both sides,” Mr. Schneiderman said at a news conference in New York on Thursday. “We’re looking at folks who obtain information, and we’re looking at the analysts who provide the information….”
The remarks came a day after his office reached an agreement with BlackRock, the world’s largest asset manager, to end the company’s practice of surveying Wall Street analysts for early clues on their opinions before those opinions became public. BlackRock did not have to pay a fine or penalty but did agree to pay $400,000 to cover the cost of the investigation.