New York's Attorney General and the Securities and Exchange Commission are investigating investment bank Rodman & Renshaw. They're trying to determine whether the firm fired an analyst because he wanted to publish a report critical of one of the firm's clients.
Biotechnology analyst Matt Murray said he was fired soon after suggesting the rating of client Halozyme Therapeutics be lowered once the biopharmaceutical company's stock reached its price target, according to the New York Post. Murray said he asked the firm to remove his name from its coverage when his suggestion was turned down. The Post said both the attorney general's office and the SEC have issued subpoenas related to the matter, but a spokesman for Rodman & Renshaw said only the firm was confident it had "acted appropriately."
Rodman & Renshaw specializes in underwriting private investment in public equities, or "PIPEs." The firm's chairman is Gen. Wesley Clark, who is sometimes mentioned as a possible Democratic presidential candidate.
Separately, Andy Xie, Morgan Stanley's highly regarded economist in Asia, left the investment bank after his internal memo on a private dinner hosted by Singapore's Prime Minister Lee Hsien Loong was leaked. In the memo, Xie was critical of Singapore's economic efforts, reported The Wall Street Journal. The newspaper noted that Morgan Stanley is one of the leading investment banks in Singapore.