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Making Money From Backdating

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We're glad to see that financial institutions are taking up our suggestion and spending time running the models to see who will be the next target of an SEC-Wall Street Journal-Board of Directors investigation into backdated options. It's a relatively easy set of numbers to crunch, so there is no reason why anyone who is in the business of doing financial analysis shouldn't be doing something along these lines.

With about 60 companies facing investigations by the government or their boards of directors into whether they backdated options, research teams at Merrill Lynch, Citigroup Inc. and Cowen & Co. are assembling task forces to try to pinpoint which will be next to receive a government subpoena or be investigated by their own boards of directors.

Analysts work to pinpoint next option scandal