Exhibit 99.1




May 20, 2002




Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549

Gentlemen:

We have read Item 4 of Form 8-K dated May 20, 2002,  of The Morgan  Group,  Inc.
and are in  agreement  with the  statements  contained  in the  second and third
paragraphs  on page 1 therein.  We have no basis to agree or disagree with other
statements of the registrant contained therein.


                                               /s/ Ernst & Young LLP
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