Monday, July 11, 2005

Rethinking Conflicts of Interest

The current issue of Regulation Magazine includes an interesting article questioning common assumptions about the effects of conflict by asking the question:

Can stock analysts’ conflicts of interest benefit investors?

and suggests that in can...

Author, James C. Spindler essentially makes the point that the very inside information that makes the conflicted stock analyst "conflicted" is what makes his analysis of a stock more valuable to investors and that the independent analyst is so independent he can offer no information of value.

Expressing such a viewpoint is probably considered criminal by AG Spitzer. (Then again he dose conveniently ignore his own CONFLICTS OF INTEREST)

The entire article can be found in pdf form here.

[P.S. The long break in posting was due to a now successful job search that will relocate me to Washington, DC. Now that it is mostly settled expect more frequent updates.]


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