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Breakingviews: Goldman's conflicts tinkering

9:45pm IST - 03:00

Jeffrey Goldfarb talks with Reynolds Holding about Goldman's decision to restrict bankers from buying individual securities and why Wall Street allows them to own any at all.

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Today we begin with the proposition that conflicts of interest like being on both sides of the deal probably not. A good idea at least from an ethical point of view. It it's hardly rare on Wall Street with Goldman Sachs being one prominent practitioner. Will now. Goldman has come up with a policy to. At least limit conflicts but Jeff too little too late what's going on. So -- I mean the backdrop is it that all banks find themselves with massive conflicts of interest all the time to write Goldman's most prominently most notably people watch them like a hawk. Yeah defense stepped over the line a couple of times. On most recently in case involving can either Morgan and possibly tip over deal. They were advising ones I want to happen to own a stake in the LSI as did one of their seniors and got -- really hard in court exactly so. So two years later now we've had just the end of last week Brian Goldman decided to tell its bankers pay. -- by an individual's stock today. No more investing in hedge funds. Certain kinds of exposed to disagree is bigger part. Why you bankers anywhere I -- -- -- allowed to investment and adults around to -- and do we know what other banks are doing. So there -- if there's a real patchwork across Wall Street. Some banks. You know. Don't allow. Basically most banks require you to -- Check within internally and sail right through these guys client should -- not -- stock and asked if your manager track internal list. But every trade generally. Goes through some sort of terrible parents -- was delayed process. On its cumbersome if -- -- manager and everybody that works for news late on the providers of about you have to go through each one and checked it and I think most of the time these get approved. I think the whole system is just -- the point is that shouldn't be allowed at all. Can you make exceptions are right there are always going to be exceptions in the circumstances. If you think is what Goldman did was told level -- -- could buy any -- stops. It doesn't do anything about all the stocks that aren't any deal that he's so so I had a great time to reduce the -- is -- we're gonna work he lives anyplace you got to sell the -- -- she's having this long term investment -- don't. -- you know my my senses. Why practice and look at seven years. -- everyone's got down -- -- all -- portfolio and nobody can buy anything do. I'm just wipe out in the big enough conflicts of interest you'll. Just like this without getting out way. Don't want anybody alone in the stocks happens -- journalists can't use the no reason my -- it well it's a good night you'll watch receive other banks take your advice in the mean time stay tuned for more breaking views. Tomorrow.

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Breakingviews: Goldman's conflicts tinkering

9:45pm IST - 03:00

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