Exam 30: Web 5:conflicts of Interest in the Financial Services Industry

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 authorized investors to bring lawsuits against credit-rating agencies for a reckless failure to get the facts when providing a credit rating.This is an example of which remedy of conflicts of interest?

Conflicts of interest may arise within the credit rating agencies because

Under the Sarbanes-Oxley Act of 2002,the provision that gives more funding to the SEC is an example of

Evidence suggests that the market ________ take into account the credibility of analyst's recommendations of IPOs that were underwritten at the analyst's investment bank because the performance of these recommendations was about 50% ________ compared to recommendations made by other analysts at different investment banks.

Of the remedies for conflicts of interest,which one is the most intrusive?

The problem with spinning is that it may ________ the cost of capital to a firm and thus ________ the efficiency of the capital market.

Which of the following policy measures prohibited compliance officers from being involved in producing or selling credit ratings?

Which policy measure requires investment banks to make public their analysts' recommendations?

When the SEC requires companies to publicly release financial statements,which of the following remedies of conflicts of interest does this fall under?

Which policy measure increases the punishment for white-collar crime and obstruction of official investigations?

When the Glass-Steagall Act was repealed in 1999,potential conflicts of interest arose with

Which policy measure bans spinning?

Under the Global Legal Settlement of 2002,the provision that requires investment banking firms to sever the link between underwriting and research is an example of

If a conflict of interest exists

When financial institutions are able to reduce the costs of information for each service they offer by applying the same information source to each service,we say that the financial institution is realizing

When investment banks allocate shares of a popular but underpriced IPO to executives of other firms in order to attract their business,it is called

Which of the following is not a conflict of interest in accounting firms?

Reputational rents refer to

Under the Global Legal Settlement of 2002,the provision that requires investment banking firms to make their analysts' recommendations public is an example of

Under the Sarbanes-Oxley Act of 2002,the clause that makes it unlawful for a registered public accounting firm to provide any nonaudit service to a client contemporaneously with an impermissible audit is an example of which remedy of conflicts of interest?