CHAPTER 8

REDEMPTION SONG

A CONVERSATION WITH HENRY BLODGET

 

In 1998 Henry Blodget became a very public face of the bubble by putting an audacious presplit $400 price target on Amazon.com. When the stock reached that mark within 60 days, a star was born.

In 2002 that same star was disgraced and publicly lynched when then-New York attorney general Eliot Spitzer published e-mails Henry had written while working at Merrill Lynch. The e-mails rather vaguely conflicted with his favorable published ratings of several of the stocks he was covering as a hotshot Internet analyst. The prosecution was one of the first based on the use of internal e-mails as evidence of fraud.

The complaint was settled when Blodget agreed to a total of $4 million in fines ...

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