The New Robber Barons by Tavakoli Janet M

Author:Tavakoli, Janet M. [Tavakoli, Janet M.]
Language: eng
Format: mobi
Published: 2012-02-17T04:30:00+00:00

For example, the Springfield (Massachusetts) Finance Control Board alleged that Merrill Lynch & Co. sold it “AAA” rated CDO products backed by subprime debt without fully disclosing the risk. State law limits Springfield’s investments to government securities and short-term liquid investments. Regarding Springfield, I told the Wall Street Journal: “Merrill has to know its customers and sell them what’s suitable and appropriate. These CDOs are not.”

There is often a difference between an investor with a lot of money to manage and a sophisticated investor. That is why many compliance departments at investment banks ask that brokers and institutional salespeople to “know your customer.” Investments must be “suitable and appropriate” for investors. The idea is to sell complex products to investors that have the ability to understand and analyze the risk.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.