The fledging independent research industry has been dealt a nasty one-two punch. The on-going financial crisis obviously took a toll, as did the expiration of the provision of the tainted research "global settlement" that required banks to buy such research for five years. The results have not been pretty, according to the Financial Times.

In 2009, asset managers will spend an estimated $1.67 billion on research from independent providers, down 18 percent from 2008. Of the 1,115 independents that Integrity Research tracks, at least 131 are no longer operating, up from 76 a year ago. But no one should conclude that independent research is dead. FT notes three star analysts who seem to be faring okay as independents: Ivy Zelman, a housing industry analyst who left Credit Suisse Group; Dana Telsey, a luxury goods analyst who left Bear Stearns; and Meredith Whitney. 

As Wall Street recovers, we may see a resurgence of innovative products. The bar is moving much higher. Increasingly, you've got to go beyond mere stock calling. 

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