Conflict of interest charges highlight reputational risk


NEW YORK -- The market-place proved once again the most accurate measure of the cost of a damaged reputation as investors backed away in April from involvement with US investment banks under investigation for allegedly tolerating duplicity among their equity analysts.

The prices of bonds issued by several investment banks fell as New York state and US federal authorities began looking into apparent conflicts of interest between their broker-dealer and investment banking businesses.

The reaction

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