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.
Regional & Community Outreach connects the Bank to Main Street via structured dialogues and two-way conversations on small business, mortgages, and household credit.
Economic Education improves public knowledge about the Federal Reserve System, monetary policy implementation, and promoting financial stability through the Museum and programs for K-16 students and educators, and the community.
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.