Why Do People Love to Hate Goldman?

[KrazyHorse]

So important I said it twice.

[Dauphin]

Law firms are held to a much stricter conflict of interest standard. Do financial organizations have to make conflict checks?

Hell yes. My firm has passed on lots of work due to conflicts on an organisational level.

[KrazyHorse]

I have yet to meet a company which acted except through agents. Perhaps you can enlighten me?

[KrazyHorse]

Conflicts contained in the advisory space are somewhat different than supposed conflicts in vastly separated spaces....

[Dauphin]

The conflict can still arise because of the organisation, and not because of the agent.

[Dauphin]

Conflicts contained in the advisory space are somewhat different than supposed conflicts in vastly separated spaces....

If you are execution only, I can accept that.

[KrazyHorse]

dp

[KrazyHorse]

The conflict can only exist when agents straddle roles, at some point up the chain.

If agents' incentives and information are separated properly then the conflict will not arise.

[KrazyHorse]

If you are execution only, I can accept that.

You meaning who?

[Dauphin]

Perceived conflict can still be a problem. If you can guarantee the Chinese wall, great, but you still might want to be aware of the potential conflict so that you can manage them properly and avoid perceived potential impropriety.

[KrazyHorse]

By the way, execution is inseparable in any meaningful way from positioning...

[Dauphin]

You meaning who?

Generic.

[Dauphin]

By the way, execution is inseparable in any meaningful way from positioning...

By which you mean, giving professional advice.

[KrazyHorse]

Perceived conflict can still be a problem. If you can guarantee the Chinese wall, great, but you still might want to be aware of the potential conflict so that you can manage them properly and avoid perceived potential impropriety.

Perception is the only real problem here,and as far as I can tell, clients are fairly happy with the safeguards integrated IBs have in place.

[KrazyHorse]

By which you mean, giving professional advice.

No, I mean flow vs prop