34 A Chinese Wall is a physical and legal separation of the public and private

34 a chinese wall is a physical and legal separation

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program, was able to achieve an additional repatriation-related tax benefit.34.A Chinese Wallis a physical and legal separation of the public and private side of a bank that restricts communication between proprietary traders and the client-related traders in a firm, due to possible conflicts of interests in competition for the same trades. The Securities and Exchange Commission is the regulator concerned with ensuring that there is no insider trading from information “over-the-wall”.35.A Credit Default Swap essentially an insurance policy against the potential default of a reference entity. The CDS is a contract between a protection buyer, a protection seller and a reference entity. The protection buyer would have to make payments to the protection seller within a CDS contract. Regulators have now required protection sellers to release information regarding the nature and terms of the CDS, as well as information regarding the payment and performance risk of the CDS, possible future payments, its fair value and any other provisions.36.The Dodd-Frank Act of 2010 was passed mainly to allow the financial services industry to be more strongly regulated by the government in the hopes of preventing another massive financial crisis; a large portion of the financial services industry was essentially placed into the hands of the government. The most controversial part of the act is the Volcker Rule which basically mandates that no banking entity can partake in trading activity. In the majority of investment banks, the proprietary trading divisions generated the highest revenues before the financial industry, but the explosion of trading activity was also one of the main reasons for the crash. And so such a rule will greatly limit an investment banks revenue generating capabilities as a large part of their business will now be illegal. 37.If the same bank that is offering the M&A advisory will also provide the fairness opinion, there is the possibility of a conflict of interest in that because the bank would like to receive the fees from a transaction being completed, they would (maybe) feel compelled to give a favorable fairness opinion to shareholders in order to help get the transaction approved. In the P&G acquisition of Gillette, since the same banks, Goldman Sachs and UBS, were providing the M&A advisory as well as the fairness opinion, there was definitely the possibility of a conflict of interest, which led to the subpoena against the P&G and the banks. 38.The Troubled Asset Relief Program (TARP) was designed to prop up the financial industry following the crisis by purchasing the troubled assets and equity of those financial entities that were burdened with toxic assets. Due to this program, the government ended up owning 36% of Citigroup.
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BRIAN ZHOU (2609780)39.Definitely not, as we can see from Lampert’s story, all the information can be traced to the credit card, and you will be found out! Cash is safer to use if such a situation does arise…
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