Dom,
It was great meeting you too. I understand what you mean now -
In short, I'd say this: aside from the apparent conflict of interest in an example such as you mentioned, there is a positive spin to put on it as well. In maintaining the compliance feature known as the "Chinese Wall" (of which one among many other hallmarks is the aforementioned "grey list"), the goal is to keep the trading department and the research departments separate, particularly where proprietary trading, principal investments, impending research releases, and investment banking-privileged information are concerned.
One hallmark of that departmental isolation, and a sign of successful Chinese Wall policies, include the behavior that you cited: that once in awhile, one division is effectively saying "buy," while another is saying "sell."
Some things on Wall Street look unethical, and some are unethical. The vast majority of behaviors are misunderstood - and yes, some are well within the pale of law and regulation, but bother some people all the same.
LPS5 |
