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

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created an Office of Credit Ratings at the SEC with its own staff and the authority to fine credit-rating agencies and to deregister an agency if it produces bad ratings.This is an example of which remedy of conflicts of interest?

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 did not prohibit companies issuing securities from paying the credit-rating agencies to rate them.This is an example of which remedy of conflicts of interest?

Evidence suggests that credit-rating agencies ________ exploited conflicts of interest because ________.

A type of ________ problem that occurs when a person or institution has multiple objectives that conflict with each other is called ________.

Which of the following is a part of the Global Legal Settlement of 2002?

If the incentive to take advantage of a conflict of interest is high

The incentive for analysts in investment banks to distort research increases when

Advice on taxes,accounting or management information systems,and business strategies are commonly referred to as ________ services.

One problem with conflicts of interest is that they can reduce the ________ in financial markets,thereby increasing ________.

Which policy measure requires investment banks to sever the links between research and securities underwriting?

If there isn't sufficient information available,then which of the following approaches to reduce conflicts of interest will have the lowest probability of working?

Conflicts of interest arising from management advisory services brought down ________ in 2002.

Which of the following policy measures required the SEC to prevent issuers of asset-backed securities from choosing the credit-rating agencies that will give them the highest rating and supported earlier initiatives by the SEC?

Which policy measure makes it unlawful for a registered public accounting firm to provide any nonaudit service to a client contemporaneously with an impermissible audit?

Conflicts of interest is a type of ________ problem that occurs when a person or institution has multiple objectives that are in conflict with each other.

If firms have an incentive to hide information from mandatory disclosure because the information is proprietary,then which of the following remedies is the least intrusive way to overcome this incentive?

Which of the following policy measures forced credit-rating agencies to provide reports to the SEC when their employees go to work for a company that has been rated by them in the last twelve months?

Explain the type of conflicts of interest that can arise from the development of universal banking.

Not surprisingly,when financial institutions have consolidated more services under one roof,the amount of conflicts of interest has ________,which has led to ________ in unethical behavior.

Under the Global Legal Settlement of 2002,the provision that requires,for a period of five years,brokerage firms to contract with independent research firms to provide information to their customers is an example of