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 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 Conflict of Interest in Universal Banking written by Hedva Ber and published by . This book was released on 1997 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Deregulation of the Banking and Securities Industries written by Lawrence G. Goldberg and published by Beard Books. This book was released on 2003 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a reprint of a previously published book. It is composed of a series of papers written for a two-day conference at NYU in 1978 dealing with the problems involved in the deregulation of the banking and securities industries.
Download or read book Banking written by and published by . This book was released on 1989 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Conflict of Interest in Universal Banking written by Hedva Ber and published by . This book was released on 2000 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Conflicts of Interest Information Provision and Competition in Banking written by Patrick Bolton and published by . This book was released on 2004 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: In some markets, such as the market for drugs or for financial services, sellers have better information than buyers regarding the matching between the buyer's needs and the good's actual characteristics. Depending on the market structure, this may lead to conflicts of interest and/or the under-provision of information by the seller. This paper studies this issue in the market for financial services. The analysis presents a new model of competition between banks, as banks' price competition influences the ensuing incentives for truthful information revelation. We compare two different firm structures, specialized banking, where financial institutions provide a unique financial product, and one-stop banking, where a financial institution is able to provide several financial products which are horizontally differentiated. We show first that, although conflicts of interest may prevent information disclosure under monopoly, competition forces full information provision for sufficiently high reputation costs. Second, in the presence of market power, one-stop banks will use information strategically to increase product differentiation and therefore will always provide reliable information and charge higher prices than specialized banks, thus providing a new reason for the creation of one-stop banks. Finally, we show that, if independent financial advisers are able to provide reliable information, this increases product differentiation and therefore market power, so that it is in the interest of financial intermediaries to promote external independent financial advice.
Download or read book Institutional Membership on National Securities Exchanges written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities and published by . This book was released on 1972 with total page 498 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Conflict of Interest and the Financing of Commercial Bank Stock Ownership written by Manferd O. Peterson and published by . This book was released on 1973 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Commercial Banks in Investment Banking written by Manju Puri and published by . This book was released on 1995 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 Stock Exchange Practices written by United States. Congress. Senate. Committee on Banking and Currency and published by . This book was released on 1934 with total page 1406 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Download or read book Capital Ideas Evolving written by Peter L. Bernstein and published by Wiley + ORM. This book was released on 2011-01-31 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: "A lot has happened in the financial markets since 1992, when Peter Bernstein wrote his seminal Capital Ideas. Happily, Peter has taken up his facile pen again to describe these changes, a virtual revolution in the practice of investing that relies heavily on complex mathematics, derivatives, hedging, and hyperactive trading. This fine and eminently readable book is unlikely to be surpassed as the definitive chronicle of a truly historic era." John C. Bogle, founder of The Vanguard Group and author, The Little Book of Common Sense Investing "Just as Dante could not have understood or survived the perils of the Inferno without Virgil to guide him, investors today need Peter Bernstein to help find their way across dark and shifting ground. No one alive understands Wall Street's intellectual history better, and that makes Bernstein our best and wisest guide to the future. He is the only person who could have written this book; thank goodness he did." Jason Zweig, Investing Columnist, Money magazine "Another must-read from Peter Bernstein! This well-written and thought-provoking book provides valuable insights on how key finance theories have evolved from their ivory tower formulation to profitable application by portfolio managers. This book will certainly be read with keen interest by, and undoubtedly influence, a wide range of participants in international finance." Dr. Mohamed A. El-Erian, President and CEO of Harvard Management Company, Deputy Treasurer of Harvard University, and member of the faculty of the Harvard Business School "Reading Capital Ideas Evolving is an experience not to be missed. Peter Bernstein's knowledge of the principal characters-the giants in the development of investment theory and practice-brings this subject to life." Linda B. Strumpf, Vice President and Chief Investment Officer, The Ford Foundation "With great clarity, Peter Bernstein introduces us to the insights of investment giants, and explains how they transformed financial theory into portfolio practice. This is not just a tale of money and models; it is a fascinating and contemporary story about people and the power of their ideas." Elroy Dimson, BGI Professor of Investment Management, London Business School "Capital Ideas Evolving provides us with a unique appreciation for the pervasive impact that the theory of modern finance has had on the development of our capital markets. Peter Bernstein once again has produced a masterpiece that is must reading for practitioners, educators and students of finance." Andr F. Perold, Professor of Finance, Harvard Business School
Download or read book Deregulating Wall Street written by Ingo Walter and published by Wiley-Interscience. This book was released on 1985 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Deregulating Wall Street is the first comprehensive study to examine the separation of American commercial and investment banking. The authors, leading authorities on the subject, call for far-reaching deregulation of corporate finance, allowing increased competition for corporate securities business. In effect, they call for one of the most significant shifts in the country's financial system in the past half century, and point to the global financial services environment, including the thriving Eurobond market, where American banks compete without restriction.
Download or read book Conflicts of Interest written by Louis M. Kohlmeier and published by . This book was released on 1976 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investment Banking Crash Course written by IntroBooks and published by IntroBooks. This book was released on 2018-02-20 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Man learnt to invest a long time ago, but investment banking has a relatively short history. It wasn’t until the Dutch East India Company, VOC, started issuing bonds and shares of stock to the general public that investment banking saw the light of the day. But since then, the services provided by investment banks has grown exponentially and it is today considered to be one of the most lucrative segments of financial institutions. Investment banking is different from commercial or retail banks in the fact that they do not take deposits. But this is not the only difference, there are other things that make investment banking unlike any other form of banking. There are a number of functions performed by investment banks. Investment bankers in the U.S. must be a licensed broker-dealer and they must follow the rules and regulations laid down by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). Knowing the history of investment banking, the manner in which it has evolved over the period of time and the different services that it offers can help anyone who wants to be an investment banker or who is interested in investment banking.
