This scandal in the making could rock the very foundation of the U.S. capital markets, because if investors believe that the markets are rigged and the firms that comment upon them are conflicted from giving fair and impartial advice, liquidity in the market will dry up and sources of capital will no longer be readily available.

It is in the interests of Wall Street to pro-actively implement its own set of comprehensive rules and procedures to prevent the actual or perceived abuses involving research analysts. A failure to do so will leave the task to Congress and the regulators.