Supervision and Class Action Against Conflicts of Interest in 'Universal Banking': US Experience vis-a-vis Recent Italian Initiatives

Reputational Risk and Conflicts of Interest in Banking and Finance: The Evidence So Far

“…The reality is that the value of financial intermediaries suffers from such 4 For a discussion, see Capiello (2006). 5 For a full examination of these issues, see Smith & Walter (1997).…”

Securities class actions in the US banking sector: Between investor protection and bank stability

“…Usually investors proceed by SCA in the cases of SEC jurisdiction, which involves markets transparency and integrity, with particular atten-8 See Burch (2008) for a broad review and development of this issue. See also Cappiello (2007), Choi (2007), Helland and Klick (2009). For a critical view on this point see Rose (2008).…”

“…14 However, in order to prevent wrongdoings, violations of fiduciary duties, and excessive risk undertaken from harming investors and threatening bank stability, both banking supervisory authorities and the SEC have been engaged in the regulation and the supervision of commercial banks, investment banks and conglomerates, which are simultaneously securities issuers, bankers and intermediaries. For instance, the SEC can impose provisions and penalties when an investment bank joining a conglomerate with a commercial one deals with debt instruments without disclosing information to the market about the actual financial situation of the underlying assets (Cappiello, 2007). In such a case investors can also claim damages through an SCA.…”