Stockbroker Conflict Not a New Occurrence

Your revelation about the conflict of interest in Merrill Lynch analysts’ recommendations does not surprise me [“E-Mails Open New Probe of Analysts,” Market Beat, April 14].

In the 1960s, I was the treasurer of an investment club. As such, I received the touts from our stockbroker along with the monthly statements. Out of curiosity, I kept track of those recommendations over a period of two years.

My analysis showed that if we had done the opposite of what the broker recommended, we’d have been well ahead.

A deeper study indicated that if we’d received the recommendations six months earlier and bought the stocks (there were never any recommendations to sell), then we’d have done well if we’d sold them when we really did receive those recommendations.

This convinced me that the brokers had bought some stocks at one time and then, some months later, touted them to their clients so they could unload them at a profit.

By the way, that broker was Merrill Lynch.

David Feign

Santa Ana