NYSE Chief Offers Help With Merrill Settlement

New York Stock Exchange Chairman Richard Grasso has offered his help in bringing about a resolution to the investigation of Merrill Lynch & Co. stock analysts by New York Atty. Gen. Eliot Spitzer.

Grasso called Spitzer on Friday, offering to arrange a meeting with Merrill Lynch Chairman David Komansky to craft a settlement without lawyers present, said NYSE spokesman Rich Adamonis.

The offer was reported Monday by the Wall Street Journal, which quoted Grasso as saying he is concerned about a growing perception among small investors that “Wall Street is totally corrupt.”

Merrill Lynch officials and Spitzer couldn’t be reached for comment.

Spitzer has said millions of investors lost money because of too-rosy stock recommendations by stock analysts.

Last month he unveiled a series of e-mails sent by Merrill analysts showing they apparently had grave doubts about some stocks that they were recommending to investors.

Spitzer and Merrill are negotiating a fine and payment to investors who lost money based on the stock recommendations of the firm’s analysts, as well as larger-scale reforms for its stock research division. The changes are expected to serve as an industry model.

The Securities and Exchange Commission also is investigating, and Spitzer has widened his investigation to include many of Merrill Lynch’s major Wall Street rivals.