House Panelists Pan Analyst Self-Regulation Plan American Banker (06/15/01) Vol. 24, No. 6 p.4; Garver, Rob
Equity analysts testifying before the House Financial Services
capital markets panel Thursday presented their case as to why analysts
should not be held accountable when investors act independently of them
and make their own investment decisions. Appearing before the capital
markets panel, EnTrust Capital founding partner Gregg Hymowitz said that
people who make their own investment decisions instead of turning that
job over to a manager or mutual fund should be responsible for their
decisions. But lawmakers said that expectation is unrealistic. Rep.
Richard H. Baker (R-La.) said it is impractical to expect individual
investors to be able to read and understand disclosure documents filed
with the Securities and Exchange Commission.