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Kreuger's American bankers, the Boston Brahmin house of Lee, Higginson & Company, were no less credulous toward their foremost underwriting client.
The underwriting client may not object it may be thrilled to see its stock bounce up the first day but it's still leaving money on the table.
It appears that banks were willing to risk the financial health of their underwriting client for more investment banking businesses from others.
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He made the mistake of writing up and panning;one of the firm's underwriting clients.
Why do the underwriting clients put up with this state of affairs?
Investment letters are prepared to give sell signals; the investment banks shrink from them because it upsets their underwriting clients.
Forgotten was her down-with-the-ship support of the stocks of Morgan Stanley underwriting clients Priceline and Amazon.com.
Under their leadership, the business has tilted from advising and underwriting for corporate clients to emphasizing trading.
Its fees run between twenty thousand and ninety thousand dollars, and, more often than not, the cost of the program is underwritten by a client's company as part of a severance package.
Some Democrats, institutional investors and consumer groups complained that the rules were both tardy and tepid and were intended by industry cheerleaders to head off more stringent proposals for a ban on allowing analysts to work on merger and underwriting business for clients of their investment banks.
Morgan's profit gained on fees from investment banking, underwriting stock and managing clients' money.
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