An Uber and Lyft car is seen in San Diego, California, U.S. May 18, 2018. REUTERS/Lucy Nicholson - RC1911136240
© Reuters

Michael Moritz (“Investment banks lose their stranglehold on IPOs”, August 19) skirts around another awful sideshow concerning initial public offerings: how US banks control access to management so that only “their” analysts and favoured clients get to question the company. In the UK, this “closed shop” was ended. Such a move would be welcome in the US.

There is no greater example than IPOs of how conflicted — and misleading — investment bank research can be. Lyft and Uber both had more than 20 banks in their “syndicates”. Want to guess how many rated either — now both 20 per cent-plus below IPO price — a “sell”?

Richard Kramer
Founder and Managing Partner,
Arete Research,
London EC1, UK

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