Chinese wall investment banking


What is the Chinese Wall in investment banking?

A Brief History of the Ethical Barrier in Investment Banking

A Chinese Wall is an ethical concept of separation between groups, departments, or individuals within the same organization—a virtual barrier that prohibits communications or exchanges of information that could cause conflicts of interest.

Why is it called a Chinese wall?

The expression Chinese Wall comes from the Great Wall of China and became a metaphor of barriers, known to go back to the United States stock market crash of 1929.

Is the term Chinese wall offensive?

“Chinese Wall” is [a] piece of legal flotsam that should be emphatically abandoned. The term has an ethnic focus that many would consider a subtle form of linguistic discrimination. Certainly, the continued use of the term would be insensitive to the ethnic identity of the many persons of Chinese descent. . . .

What are Chinese walls in law?

A Chinese wall, in business, is a virtual barrier erected to block the exchange of information between departments. The wall is intended to prevent the sharing of information that might lead to ethical or legal violations.

How long is Chinese wall?

21,196 km

What does above the wall mean?

If a public-side group or individual needs access to MNPI, broker-dealers employ what is known as an “over the wall” process: first, the private-side group with MNPI identifies to the control room the names of the public-side employees who will be given access to MNPI regarding a specific company.

Can you walk the entire Wall of China?

Winding its staggering way along over 5,000 miles, the Great Wall of China needs little in the way of introduction. It’s long, seriously long – it would take around 18 months to walk its length.

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Why did China build the Great Wall?

The Great Wall of China was built as a military defensive line to defend the invasions from some northern nomadic nations. Apart from the function of defense, the wall also boosted the economy, as well as promoted the culture exchange and national integration of different nations at its two sides.

Who built China wall?

Emperor Qin Shi Huang

What is Chinese Wall security model?

Definition. The Chinese Wall model is a security model that concentrates on confidentiality and finds itself application in the commercial world. The model bases itself on the principles defined in the Clark Wilson security model.

What are ethical walls?

n. A process for avoiding conflicts of interest by limiting disclosure of information to certain attorneys or individuals within a firm or corporation, thereby building a metaphorical wall between the holders of information and colleagues who represent interests or hold opinions which conflict.

How tall is the Great Wall of China?

6. The average height of the Great Wall at Badaling and Juyong Pass is 7.88 meters, and the highest place is 14 meters high.

What does Wall mean?

(Entry 1 of 3) 1a : a high thick masonry structure forming a long rampart or an enclosure chiefly for defense —often used in plural. b : a masonry fence around a garden, park, or estate. c : a structure that serves to hold back pressure (as of water or sliding earth)

What does over the wall mean in finance?

Being “brought over the wall” is when an employee in the research department of an investment bank—usually a research analyst—is brought over to work for the underwriting department in order to focus on a particular company. … This situation is also known as “brought over the Chinese Wall.”

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