Sunday, 25 April 2010

Conflicts of interest and the myth of Chinese walls

I have just finished reading The Big Short by Michael Lewis. In what is a very good account of the complete amorality of the practices of many on Wall Street the most telling few sentences of the book for me came in a footnote on page 205

Wall Street firms like to say they build Chinese walls to keep information about customer trading from leaking to their own proprietary traders. Vincent Daniel of Front Point Partners offered the most most succinct response to this pretense: "When I hear "Chinese wall", I think, You're a fucking liar."

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