Of Chinese Walls and Hahvuhd Yahds
Posted in Professional Sports on August 7th, 2013 by Craig Zuckerman
What on earth is a Chinese Wall? Yes, it could be the Great Wall of China. But it’s not. It is a business term, which is defined as an “ethical barrier between divisions of a financial (or other) institution to avoid conflict of interest.” (Investorpedia)
The typical example would be an investment banking firm with multiple lines of business. Perhaps one division is helping a company sell its bonds to the public, and perhaps another division is analyzing its client’s assets, etc. One division might realize its assets are worth about 20 cents on the dollar, while the other is trying to ream the public by selling the bonds for 97 cents on the dollar. (Any bells going off yet? Think Mortgage Crisis).
Anywho, imagine what would happen if Read more »
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