Analysts will wilt under bright lights of the trading floor

Led by Lehman Brothers, the role of the lowly equity analyst is transmogrifying into something rather more exciting. But are analysts up to the challenge?

The Wall Street Journal last week reported that Lehman Brothers has asked some of its analysts to give up writing research reports in darkened rooms, and move onto the trading desk where they can converse directly

with the bank's clients and traders about which stocks to invest in.

According to the Financial Times, banks like Goldman Sachs and Morgan Stanley are contemplating doing the same. The FT quotes John Webster, of consultancy Greenwich Associates, who says hedge fund clients in particular want real-time trading ideas, not hours-old or days-old written reports.

Can equity analysts meet the need for real-time trading ideas delivered orally, or will they crumble under the bright lights of the trading floor? At least one headhunter thinks they'll struggle to deliver.

"Most analysts are incapable of talking directly to clients," says Jonathan Evans, at equity specialist search firm Sammons Associates. He adds: "That's why you have specialist sales people to act as their mouthpiece."

Evans says Lehman's new arrangement makes sense from a cost perspective because it combines specialist sales and research roles. But he says banks will need to dig deep to find the right talent: "Only 5% of the analysts I see would be capable of marketing products directly to clients."