Goin' to the slammer?
Ouch!! If Grubman isn't put away on the strength of this passge alone there's something wrong. WSJ. Citigroup and Jack Grubman increasingly at odds (rats on a sinking ship). The NY's Eliot Spitzer is focusing on Grubman's overly optimistic ratings. Grubman says it wasn't his fault and blames Citigroup execs for manipulating his ratings. Citigroup says it didn't ever put undue pressure on Grubman. Analysis: Spitzer has got them both. Check out this bit of e-mail:
The suit doesn't spare Mr. Grubman. It includes an e-mail in which the 49-year-old analyst appears to admit giving a far higher rating to a stock, Focal Communications, than it deserved. Upon hearing that Focal wasn't satisfied with his report, even though it was positive, Mr. Grubman wrote: "If I so much as hear one more f-----g peep out of them we will put the proper rating (ie 4 not even 3) on this stock which every single smart buysider feels is going to zero." Focal, which was trading at $15.50 at the time, is now at about 30 cents a share.