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Byline: KEN HOOVER
The Securities and Exchange Commission votes Wednesday on new rules that are supposed to rebuild the Chinese Wall between analysts and investment bankers.
The rules would:
- Prohibit investment bankers from supervising analysts or tying their pay to the success of underwriting deals.
- Bar investment bankers from promising a favorable rating to win companies' business.
- Extend to 40 from 25 days the "quiet period" after an IPO, during which analysts can't put out a research report if their firm handled the underwriting. There would be a new 10-day quiet period on subsequent offerings.
- Bar analysts from getting shares of new stock before it is traded publicly, and bar them from trading in a stock 30 days before or five days after issuing a report on the company. And they couldn't trade counter to their recommendation. In other words, they couldn't tell investors to buy while …