The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
Agency Problems and Conflicts of Interest in Financial Intermediaries
December 3-4, 2004
A conference jointly sponsored by the Federal Reserve Bank of New York, the Journal of Financial Economics (JFE), and the Dice Center for Research in Financial Economics of Ohio State University.
Overview In financial markets, financial intermediaries act as agents of issuers and investors, and “gatekeepers.” This multiplicity of functions can lead to conflicts of interest. By performing its gatekeeping role well, for instance, a financial intermediary may have to forgo profitable investment banking assignments.
This conference aims to promote a better understanding of the economic relevance of conflicts of interest in financial intermediaries by examining: whether the conflicts were particularly worse at the end of the 1990s; how conflicts are managed within financial institutions; how contracting, legal, and reputation mechanisms affect conflicts; and the role of regulatory authorities and regulations in overseeing conflicts.