Download or read book Conflict of Interest and the Separation of Commercial and Investment Banking written by Raghuram Rajan and published by . This book was released on 1991 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Separation of Commercial and Investment Banking written by George J. Benston and published by Springer. This book was released on 1990-06-18 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt: The latest in a series of studies in banking and international finance. This book deals with all aspects of the Glass-Steagall Act, and the relationship between the commercial banks and the investment banks.
Download or read book Conflicts of Interest in the Financial Services Industry written by Andrew Crockett and published by Centre for Economic Policy Research. This book was released on 2003 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fifth report in this series focuses on conflicts of interest that arise when a firm combines multiple lines of business, creating multiple interests. Conflicts between research and underwriting in investment banking and between auditing and consulting in accounting firms are investigated, as are the problems that arise from rating agencies providing consulting services and from universal banks combining commercial and investment banking. In the recent stock market collapse, confidence in the financial industry was shaken by numerous scandals. Beginning with Enron in 2001, scandals brought about the demise of prominent financial figures, damaged the reputation of premiere firms and destroyed the global accounting giant Arthur Andersen. Central to this crisis was the exploitation of conflicts of interest. Research analysts at investment banks were found to be distorting information at the behest of underwriting departments eager to promote new issues. Auditors appeared to sanction misleading accounting in order to gain business for the consulting side of their firms. Policy response in the United States was quick. Large fines were levied and regulators compelled the separation of financial security function, constraining financial conglomerates. But are these new regulations and safeguards adequate protection? What costs do they impose on the industry? This fifth title in the ICMP/CEPR series of Geneva Reports on the World Economy examines the problem of conflicts of interest in the financial system. Conflicts of interest lead to a decrease in information that makes it harder for the system to provide savers wit the accurate, essential information that induces them to provide credit to borrowers. This study focuses on conflicts of interest that arise when a firm combines multiple lines of business, creating multiple interests. Conflicts between research and underwriting in investment banking and between auditing and consulting in accounting firms are investigated, as are the problems that arise from rating agencies providing consulting services and from universal banks combining commercial and investment banking. Determining the appropriate remedy for a conflict is a challenge because the elimination of conflicts may also eliminate benefits from economies of scope. This study examines five generic remedies: market discipline, regulation for increased transparency, supervisory oversight, separation of financial activities by function, and socialization of the collection and distribution of information. The authors apply this framework to assess critically the Sarbanes-Oxley Act and the Global Settlement between American regulators and investment banks.
Download or read book Commercial and Investment Banking written by Mike Adu-Gyamfi and published by . This book was released on 2016 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the arguments for and counter-arguments against the separation of the services of investment and commercial banks. It firstly, looks at banking in general and the intermediary role of banks in promoting economic development through the allocations resources, and analyses the key features of main branches of banking including commercial, investment and universal banking. The paper also deduces the fundamental differences between commercial and investment banking in terms of services provided, regulation, sources of revenue and modes of operations. The Banking Act of 1933 referred to as Glass - Steagall Act was promulgated in the United States of America to promote the separation of commercial and investment banks, (Tabarrok, 1998; Jackson, 1987; Filipiak, 2009; Mayer, 2009). This Act was said to be occasioned by the financial crisis of the 1930s where the U.S stock fell by 90% from its 1929 peak. (Tabarrok, 1998). The proponents of this Act cited conflict of interest amongst other things to support the need for the separation. One counter argument put forward by Casserley, Härle and Macdonald (n.d) is that sophisticated global economy requires one-stop large banks where customers can be offered vast range of products and services. It is concluded that though universal banking is highly beneficial, there is the need for strict regulation, constant and effective supervision in order to avoid conflict of interest, monopoly and possible failure of the banking system.
Download or read book Separation of Investment Banking and Commercial Banking written by John MacCarthy and published by . This book was released on 2016 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to critically examine existing literature on separation of commercial banking activities from investment banking activities in order to advise whether the commercial and investment banking activities should be combined or separated. Introduction of new regulation in the wake of global financial crisis bring with it additional operating cost to operators of the financial sectors. While supervising plethora of regulations by central banks becomes difficulty and in the end nothing is achieve from it. The paper identified the causes of the global financial crisis that commenced in the mid-2007 as a result of global financial imbalance; long period of low interest rates in the advanced economies; consumer failure to monitor for themselves; managers compensation schemes encouraged risk-taking; skewed incentives of the rating agencies and finally, the limitation of risk measurement and regulation. These reasons contributed to the global financial crises and not the repealed Glass-Steagall Act. The study concluded that the repealed of the Act did not cause the global financial crisis in 2007 but was rather due to inadequate supervision by the regulators. The study adopts content analysis to assess the risks associated with combining the two operations together and those who posit that the combination should be separated and those in favour of it. The study professed some recommendations that will protect public interest and private capital while carrying out combined operations of commercial banking and investment banking activities.
Download or read book Conflicts of Interest written by Luc Thévenoz and published by Kluwer Law International B.V.. This book was released on 2007-01-01 with total page 422 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conflicts of interest arise naturally in all walks of life, particularly in business life. As general and indeed inevitable phenomena, conflicts of interest should not be prohibited but properly managed. This book presents indepth analysis of such management in three areas of corporate governance where the conflict-of-interest problems are particularly acute: executive compensation, financial analysis, and asset management. ""Conflicts of Interest"" presents the results of a two-year-long research project bringing together academics and practitioners in both law and finance from Europe and the.
Download or read book Limitations on the Business of Banking RLE Banking Finance written by R Daniel Pace and published by Routledge. This book was released on 2012-10-12 with total page 177 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a study of how expanded bank powers could affect the banking industry in the US. Using contemporaneous measures, expanded data, a finer classification of industries, risk-reducing behavior, and the legal and regulatory environment this volume provides a more complete picture than earlier studies.
Download or read book Making Banks Safer written by Mr.Julian T. S. Chow and published by International Monetary Fund. This book was released on 2011-10-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses proposals to redefine the scope of activities of systemically important financial institutions. Alongside reform of prudential regulation and oversight, these have been offered as solutions to the too-important-to-fail problem. It is argued that while the more radical of these proposals such as narrow utility banking do not adequately address key policy objectives, two concrete policy measures - the Volcker Rule in the United States and retail ring-fencing in the United Kingdom - are more promising while still entailing significant implementation challenges. A risk factor common to all the measures is the potential for activities identified as too risky for retail banks to migrate to the unregulated parts of the financial system. Since this could lead to accumulation of systemic risk if left unchecked, it appears unlikely that any structural engineering will lessen the policing burden on prudential authorities and on the banks.
Download or read book Separation of Commercial and Investment Banking written by George James Benston and published by . This book was released on 1989 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Conflict of Interests Between Banks and the Stock Exchange written by Adi Libson and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Tel-Aviv Stock Exchange (TASE) is in crisis - it is drying-up both in terms of the volume of trade and in terms of the number of listed companies traded. We argue that the legislative reform to restructure the ownership and governance model of the TASE did not sufficiently address one of the primary causes for the crisis: the power of banks serving on the board of TASE and the conflict of interest in which they are situated. Bank deposits are a non-perfect substitute for stock investment. Banks' profits from deposits and credit activity are much higher than their profits from customers' trading activity and thus they have a strong incentive to divert investors from the stock exchange to bank deposits. We argue that this conflict of interest is most strongly manifested in passive forms of behavior. Our argument is based on a behavioral ethics analysis and is supported by economic analysis. Data on the low attendance of directors who represent banks at TASE board meetings between 2004 and 2014 support the hypothesis. From the perspective of the managerial model of boards, the low attendance rate of directors may explain the general passivity of the TASE in engaging in reforms in comparison to other stock markets in OECD countries. Passivity is especially detrimental in times of crisis which call for action, such as the situation of the TASE. We further identify active manifestation of the conflict of interest of banks in the structure of the TASE fee schedule. As compared with fees in other OECD stock markets, the TASE fee schedule reveals inefficient fees designed to limit entry to the TASE. In addition to its practical implications, the article seeks to make a theoretical contribution by extending the application of behavioral ethics to the realm of board decisions. It also contributes to the general international debate regarding the degree of separation between commercial banking and securities trading, established in the U.S. by the Volcker Rule.
Download or read book Hearings written by United States. Congress. House. Committee on Banking and Currency and published by . This book was released on 1964 with total page 1156 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Money and Banks in the American Political System written by Kathryn C. Lavelle and published by Cambridge University Press. This book was released on 2013-01-14 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Money and Banks in the American Political System, debates over financial politics are woven into the political fabric of the state and contemporary conceptions of the American dream. The author argues that the political sources of instability in finance derive from the nexus between market innovation and regulatory arbitrage. This book explores monetary, fiscal and regulatory policies within a political culture characterized by the separation of business and state, and mistrust of the concentration of power in any one political or economic institution. The bureaucratic arrangements among the branches of government, the Federal Reserve, executive agencies, and government sponsored enterprises incentivize agencies to compete for budgets, resources, governing authority and personnel.
Download or read book Principles of Financial Regulation written by John Armour and published by Oxford University Press. This book was released on 2016 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examining the subject from a holistic and multidisciplinary perspective, Principles of Financial Regulation considers the underlying policies and the objectives of financial regulation.
Download or read book Credit Intermediation and the Macroeconomy written by Sudipto Bhattacharya and published by . This book was released on 2004 with total page 934 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developments in theories of financial markets and institutions, using the tools of the economics of uncertainty and of contracts, as well as results in game theory, have, over the last two decades, constituted an exciting and burgeoning field of research. This collection of readings drawstogether highlights of the 'second generation' literature in this area, emphasizing the theoretical, institutional, and policy-oriented regulatory implications of some of the key modelling techniques in the field.The collection divides into seven sections covering the monitoring role of banks and other intermediaries; liquidity demand and the role of banks and the government; bank runs and financial crises; bank regulation; inter-bank competition and bank--firm relationships; comparative financial systems;and imperfect credit markets and the macroeconomy. Each section comprises four articles previously published in top-ranking economics and finance journals, plus a discussion by a prominent scholar, who provides a synthesis and critique of the literature, and suggests promising directions for futureresearch and application of results.
Download or read book The SAGE Encyclopedia of Business Ethics and Society written by Robert W. Kolb and published by SAGE Publications. This book was released on 2018-03-27 with total page 4074 pages. Available in PDF, EPUB and Kindle. Book excerpt: Spans the relationships among business, ethics, and society by including numerous entries that feature broad coverage of corporate social responsibility, the obligation of companies to various stakeholder groups, the contribution of business to society and culture, and the relationship between organizations and the quality of the environment.
Download or read book Securities Acts Aendments of 1975 Hearings Before the Subcommittee on Securities of 94 1 on S 249 February 19 20 and 21 1075260 written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs and published by . This book was released on 1975 with total page 536 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Oxford Companion to American Politics written by David Coates and published by Oxford University Press, USA. This book was released on 2012-07-12 with total page 1141 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides students and scholars with a valuable reference source in the field of American Politics. The Companion will equip readers with a deep understanding of the complex interaction between governmental institutions and processes and the wider American economy and society that they govern.
