Re: Investment banks often have conflicting roles. They sometimes act for
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21 Sep 2022, 05:10
Evaluate question.
A. Evaluating and rewarding the bank’s analysts on the basis of recommendations made by managers who are solely engaged in raising capital for clients OK - Rewarding the bank's analyst would compromise the report's integrity; not rewarding the bank's analyst would ensure the report's integrity.
B. Using reports by the investment bank’s analysts to determine how best to raise capital for a client Using the reports would allow for greater transparency than would hinder the bank's long-term success.
C. Sharing the task of raising capital for a client with other investment banks Sharing the risk among banks would allow for long-term success and not hinder it.
D. Ensuring that conflicts between analysts and those who raise capital for clients are carefully mediated and resolved by impartial arbitrators Ensuring conflict are carefully mediated would allow for long-term success and not hinder it.
E. Monitoring the success or failure of analysts’ current predictions about how companies will perform financially, in order to determine the value of future predictions Determining the value of predictions would allow for long-term success and not hinder it.