Can you believe that this kind of stuff goes on? Business Week Online reports that authorities are on the verge of charging at least one employee of UBS with selling advance information about changes in analyst ratings to outside traders. So apparently there is some value to sell-side research. At least two of the buyers are said to be affiliated with hedge funds. The real shocker is that the investigation "may lead to similar allegations of wrongdoing at other Wall Street investment firms." Now this would be a blow to Wall Street's image. This is an issue that firms need to take seriously. This will also contribute to the notion, fair or not, that hedge funds represent the Wild West of Wall Street, all too willing to engage in such shenanigans for a edge of dubious value. Stay tuned.

For more:
- here's the article from BusinessWeek