What To Do To Fix Investment Banks?
from the disclosure-or-break-'em-up dept
While the SEC has come out with their proposal for how to get better disclosure out of investment bankers to prevent them from hyping up stocks they know are crap – others are suggesting that investments banks should be broken up This way the research groups would become separate companies to avoid conflicts of interest. This has always seemed like a good idea to me, and I’m surprised it hasn’t gotten more traction yet. The SEC-proposed rules look very weak, and seem unlikely to do much to actually stop the backroom dealing that goes on at investment banks.