Conflicts of Interest in TBTF Firms

Guest Post: The Biggest Conflict Of Interest In Finance? | ZeroHedge.

These conflicts of interest are permitted by regulation. Indeed, maintaining so-called “information barriers” in the firm and disclosing conflicts of interest in the fine print in the myriad documents that they make you sign to open an account absolves the firm of all responsibility, particularly with trading clients. As long as the firm’s recommendations are suitable, your salesperson can recommend that you buy XYZ while the trading desk is busily dumping it to any and all comers.

Why do people continue to do business with these firms?



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