
While conglomerates bring with them many economic benefits, such as diversification of risk and economies of scale, they also impose such costs as systemic risk and conflict of interest abuses. This book explores how regulators can ensure that conglomerate regulation is sufficiently strong to eradicate abuses but sufficiently flexible to secure the benefits of conglomeration. The Chinese Wall - a regulatory mechanism aimed at stemming the flow of information from one department in a firm to another, and reconciling conflicts of interest more generally - is singled out for special treatment.
This book investigates the regulatory challenge of balancing the economic advantages of financial conglomerates against the systemic risks and conflicts of interest inherent in their structure. Harry McVea, an expert in financial regulation, examines the efficacy of the 'Chinese Wall' mechanism within large firms. He analyzes how legal frameworks can be designed to prevent information leakage and abuse while maintaining the operational flexibility required for these entities to function effectively in global markets.
What You Will Find
Experts and legal scholars recognize this work as a foundational text for understanding the intersection of corporate law and financial regulation. Readers frequently note the academic density of the prose, which provides a rigorous examination of institutional policy and regulatory design.
Page Count:
304
Publication Date:
1993-09-30
Publisher:
Clarendon Press
ISBN-10:
0198257139
ISBN-13:
9780198257134
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