Goldman Sachs is under SEC investigation for potential fraud related to mortgage-backed securities. There appears to be a conflict of interest, as Goldman Sachs advised clients to purchase mortgage securities while also shorting the same securities, without disclosing its short position to clients. If Goldman Sachs did not disclose this information, it prioritized its own interests over its clients, which represents a conflict of interest. Conflicts of interest can decrease market efficiency by reducing the quality of information available.
This has been prepared a business coach who gives finance training to corporate. This is for a more informal set up/ audience as it includes more colors, themes, images and less of text.
This is my presentation about what is money laundering crime and what is the role of financial institutions in the fight against it. I used it during my speech for a bunch of Business School Students (ISM).
This has been prepared a business coach who gives finance training to corporate. This is for a more informal set up/ audience as it includes more colors, themes, images and less of text.
This is my presentation about what is money laundering crime and what is the role of financial institutions in the fight against it. I used it during my speech for a bunch of Business School Students (ISM).
This presentation broadly covers Mumbai University MMS Semester IV - Elective - Treasury Management.
It starts with History; factors leading to modern treasury management; main objectives; Integrated treasury; departments of treasury - Front, Middle and Back office.
www.abhijeetdeshmukh.com
this is a presentation on an introduction to investment banking highlighting the key functions of an investment bank, comparing commercial bank and Investment Bank, highlighting the organizational structure of Investment banks, and Investment banking scenario in india.
This presentation broadly covers Mumbai University MMS Semester IV - Elective - Treasury Management.
It starts with History; factors leading to modern treasury management; main objectives; Integrated treasury; departments of treasury - Front, Middle and Back office.
www.abhijeetdeshmukh.com
this is a presentation on an introduction to investment banking highlighting the key functions of an investment bank, comparing commercial bank and Investment Bank, highlighting the organizational structure of Investment banks, and Investment banking scenario in india.
Social Investing: Opportunity to Address Confidence Gap - Black Swan PartnersBlack Swan Partners
There is an investment ‘confidence gap’ for both experienced investors unwilling to pay for advice upfront and for novice investors who don’t have the understanding of financial markets, or the confidence in their understanding, to invest their savings. As a result, many investors are holding too much cash, and risking their financial future as a result.
Our endeavour upheld group has more than 50 years of experience working with systematic investment management, and software development. By utilizing machine learning, data science and automation, we enable advisors to manage portfolio risk in near real-time.
An Analysis of Data Mining Applications for Fraud Detection in Securities Marketijdmtaiir
-In recent securities fraud broadly refers to deceptive
practices in connection with the offering for sale of securities.
There are many challenges involved in developing data mining
applications for fraud detection in securities market, including:
massive datasets, accuracy, privacy, performance measures and
complexity. The impacts on the market and the training of
regulators are other issues that need to be addressed. In this
paper we present the results of a Comprehensive systematic
literature review on data mining techniques for detecting
fraudulent activities and market manipulation in securities
market. We identify the best practices that are based on data
mining methods for detecting known fraudulent patterns and
discovering new predatory strategies. Furthermore, we
highlight the challenges faced in the development and
implementation of data mining systems for detecting market
manipulation in securities market and we provide
recommendation for future research works accordingly
Fiduciary or paper money is issued by the Central Bank on the basis of
computation of estimated demand for cash. Monetary policy guides the Central
Bank’s supply of money in order to achieve the objectives of price stability (or low
inflation rate), full employment, and growth in aggregate income.
Dodd-Frank Compliance and Technology Summer Meeting 2013Jeffrey C.Y. Li
Atlas Communications Technology recently co-sponsored the Dodd-Frank Compliance and Technology Summer Meeting. The presentation was an introduction to the complexities of the Dodd-Frank Wall Street Reform and Consumer Protection Act, what firms need to do to bring themselves into compliance, and the technology that can help enterprises meet the stringent demands of the act.
For more information about this conference, or to learn about our Fall meeting in September featuring one of the authors of the act, Congressman Jim Himes, please call 1-855-Dodd Frank (1-855-363-3372) for any questions, or if you wish to talk to one of our presenters today to talk about taking the next steps towards Dodd-Frank Compliance
Atlas Presentation 2013 07-09 dodd-frank summer meeting v1-0 (for online)
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
3. Any organisation in world has to follow some
rules and regulations so as to develop a
systematical environment for its customers.
Being a part of capital market, Investment
Banks play major role in prime activities.
It acts as an intermediary between investor
and companies.
4. Rules of conduct recognized in respect to a
particular class investment banking
It is that branch of philosophy dealing with
values relating to human conduct and
interest of all, with respect to rightness and
wrongness of certain actions and to the
goodness and badness of the motives and
ends of such actions.
5. In general, compliance means conforming to
a rule, such as a
specification, policy, standard or
law. Regulatory compliance describes the
goal that corporations or public agencies
aspire to achieve in their efforts to ensure
that personnel are aware of and take steps
to comply with
relevant laws and regulations.
6. Rule 1 – Independence & Objectivity
Members shall maintain independence and
objectivity in undertaking all transactions and
providing all investment banking and advisory
services.
Members shall not allow themselves to be
placed in a position of pressure to approve any
documents, structures or transactions that do
not meet compliance requirements.
Services contracts signed by such members shall
either not limit, or proactively provide for, such
independent expert discretion of conclusions
based solely upon demonstrated objective
facts, regardless of any payment for services.
7. Rule 2 – Anti-Fraud
Economic Security – Members shall not disclose
a level of general information that would enable
or permit any person to design, improve, perfect
or commit any fraud or other unlawful activity in
any transaction.
To best support legitimate transactions without
violating this rule, any reports given
or advisory statements made should be limited
to practical recommendations for correcting
defects of documentation or structures, or
suggestions for obtaining verifiable documents to
replace defective documents, strictly on a case-
by-case basis.
8. Rule 3 – Sharing for Collective Capabilities –
Members shall share information on
developing trends and practices in
investment banking, compliance procedures,
anti-fraud measures and transaction controls
with CIBIS, for analysis and processing for the
collective benefit of members.
Members shall also provide assistance to
other members in an unofficial advisory
capacity, to maintain a network of collegial
professional support, and to facilitate access
to external institutional capabilities.
9. Factors Legal Ethical
Ethos Regards ethics as a set of
limits and something that
has to be done
Defines ethics as a set of
principles to guide choices
Objectives Geared toward preventing
unlawful conduct
Geared toward achieving
responsible conduct
Method
Emphasizes rules and uses
increased monitoring and
penalties to enforce these
Rules
Treats ethics as infused in
business practice
(leadership, core systems,
decision-
making processes,
etc)
Behavioral Assumptions Rooted in deterrence theor
y(how to prevent people
from doing bad things by
manipulating the costs of
misconduct)
Rooted in individual and
communal values (both
material and spiritual)
10. Conflicts of Interest- a type of moral hazard problem that occurs when a person
or institution has multiple objectives (interests) and as a result has conflicts
between them.
Conflicts of interest usually take the form of misleading information.
Financial institutions can benefit off of giving out misleading information, hurting
the public, while giving the financial institutions greater profits.
Conflicts of interest lead to unethical behavior.
Conflicts of interest occur when an institution or employee serves his interests at
the expense of others.
Combinations of services that bring together any group of depository
intermediaries, non-depository intermediaries, and brokers, or that allow any of
these groups to invest directly in a business, are most likely to lead to conflicts of
interest.
11. Conflicts of interest can substantially reduce the quality of
information in financial markets, thereby increasing
asymmetric information problems.
In turn, asymmetric information prevents financial markets
from channeling funds into the most productive investment
opportunities and causes financial markets and the economy
to become less efficient.
The growing economies of scope have led to financial
institutions to offer many services under one roof, increasing
conflicts of interest and in turn increasing unethical behavior.
12. •Conflicts of interest become a problem for the
financial system when they lead to a decrease in the
flow of reliable information, either because
information is concealed or because misleading
information is spread.
•The decline in the flow of reliable information makes
it harder for the financial system to solve adverse
selection and moral hazard problems, which can slow
the flow of credit to parties with productive
investment opportunities
13. • Inappropriately designed compensation plans, for
example may produce conflicts of interest that not
only reduce the flow of reliable information to credit
markets but also end up destroying the firm.
• The conflict of interest problem can become even
more hazardous when several lines of business are
combined and the returns from one the activities,
such as underwriting and consulting, are very high for
only a brief amount of time. Also, a compensation
scheme that works reasonably well in the short term
might become poorly aligned in the long run.
14. Threats to truthful reporting in an audit arise
from several potential conflicts of interest.
The conflict of interest that has received the
most attention in the media occurs when an
accounting firm provides its client with
auditing services and non-audit consulting
services, commonly known as Management
Advisory Services, such as advice on taxes,
accounting or management information
systems, and business strategies
15. • Conflicts of Interest can substantially reduce the
quality of information in financial markets, thereby
increasing asymmetric information problems.
• These asymmetric information problems prevent
financial markets from channeling funds into the
most productive investment opportunities and
causes financial markets and the economy to
become less efficient.
16. Analysts in investment banks are persuaded
to distort their research to please the
underwriting department of their bank and
the corporations issuing the securities which
undermines the reliability of information
investors use for financial decisions and
diminishes the efficiency of securities
markets.
17. Spinning occurs when investment banks allocate
underpriced shares of newly issued stock to
executives of other companies in order to lure
them to use that investment bank
When the executives company plans to issue its
own securities it uses that investment bank as
an underwriter.
This causes a rise in the cost of capital for the
firm and hinders the efficiency of the capital
market.
18. A bank may make loans to a firm on overly
favorable terms to obtain fees from it for
performing activities such as underwriting the firms
securities
A bank with an outstanding loan to a firm whose
credit or bankruptcy risk has increased has private
knowledge that may encourage the bank to use its
under-writing department to sell bonds to the
unsuspecting public, thereby paying off the loan
and earning a fee.
These conflicts of interest decrease the amount of
accurate information and hinders the banks ability
to promote efficient credit allocation
19. Probably conflicts of interest can arise by
investment banks like:
Goldman Sachs
Kotak Finance
SBI
20. Goldman Sachs Group Inc. is under
investigation by the Securities &
Exchange Commission for fraud in a
mortgage securities transaction.
Was there a conflict of interest in this
transaction?
21. Goldman Sachs purchased many mortgages
from the US housing market.
They then converted them into mortgage
backed securities.
They advised clients to buy these mortgages.
At the same time they sold these mortgage
securities short as either a hedge against their
portfolio to reduce risk or as a major position
anticipating a drop in value in the US housing
market.
22. Goldman Sachs has an obligation to offer
investments that it believe are in the clients
best interest.
They are also legally obligated to know their
client, as well as what is a suitable investment
for their client.
In this case the clients of Goldman Sachs were
knowledgeable investors (i.e. International banks
and hedge funds)
Did Goldman Sachs disclose, to the clients
purchasing these mortgage products, that they
were also shorting these same securities?
If they did not, Goldman Sachs was acting in
their own best interest as opposed to that of
their clients. This is a conflict of interest.
23. Shorting Its Own Securities
Failing to Disclose Key Information to
Investors.
Failing to Disclose Client Involvement
Selling Securities Designed to Fail.
Misrepresenting Assets.
Using Poor Quality Loans in Securitizations.
Concealing Its Net Short Position.
24. Goldman Sachs, a premier investment
banking firm, may be heavily fined, broken
up and/or lose their clients trust, which is
Goldman Sachs Group Inc. most valuable
asset.
26. Sarbanes-Oxley Act of 2002 Global Legal Settlement of 2002
Increased supervisor
oversight to monitor and
prevent conflicts of interest
Directly reduced conflicts of
interest
Produced incentives for
investment banks not to
exploit conflicts of interest
Instituted measures to
improve the quality of
information in financial
markets
Directly reduced
conflicts of interest
Produced incentives
for investment banks
not to exploit
conflicts of interest
Instituted measures
to improve the
quality of information
in financial markets
27. Leave It To The Market Regulate for Transparency
The market may punish
the firm exploiting
conflicts of interest by
causing them to have
higher funding costs or
decreased demand for
services
Open market forces can
create means to contain
conflicts of interest
through information
demanded from non
conflicted organizations
Mandatory information
disclosure decreases
information
asymmetries
This in turn reveals if
conflicts of interest are
being exploited
Could be bad because of
free-loader effect
If regulated too much can
cause loss in information
production and
profitability for the firm
28. Supervisory Oversight Separation Of Functions
Supervisors can review
financial information
without revealing it to
competitors
This maintains profitability
& information production
Supervisors can then take
actions to control the
exploitation of conflicts of
interest and enforce
ethical standards
Poor supervisors allow for
exploitation to continue
Reduces economies of
scope through regulation
Information sharing
between departments is
regulated
Separates departments and
adds firewalls to ensure
that the firms agents are
not responding to multiple
principals
Results in a trade off
between information
production and reducing
conflicts of interest
29. The existence of a conflict of interest does not mean
that it will have serious adverse consequence.
Even if incentives to exploit conflicts of interest
remain strong, eliminating the economies of scope that
create the conflicts of interest may be harmful because
it will reduce the flow of reliable information.
Editor's Notes
Didn’t include socialization of information productivity because it decreases the quality of information due to the sources being publically or government funded. These entities do not share the same interest in quality information as firms do