Rapid Ratings wins Lehman Bros contract
Corporate credit and equity risk rating agency Rapid Ratings has won a lucrative contract to provide global investment bank Lehman Brothers with independent equity research.
The Brisbane-based agency, which is 70 per cent owned by debt collector firm Collection House, will provide Lehman Brothers with composite risk reports which combine share price and credit rating trends to identify equity buy, sell or hold signals for clients.
The contract win for Rapid Ratings comes as the US Securities and Exchange Commission moves to impose new regulations forcing US broking firms to include independent second opinions when offering clients advice from their own research departments.
The new regulations are part of “The Global Settlement” where 10 top Wall Street firms, accused of conflicts of interest between their investment banking and research departments, have been forced by the US Attorney General to cough up US$430 million ($623 million) to fund independent research for investors.
A spokesperson for Rapid Ratings could not confirm the monetary value of the contract but says the agency will be employing at least one extra analyst to take on the new work load associated with the deal.
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