9:39 pm

New word

I've learnt a new word to-day.
Actually, if you want to get technical about it, it's a 2-word phrase.


"Chinese wall
From
Wikipedia, the free encyclopedia.

In
business, a Chinese wall is a metaphor used to refer to the practice of making sure that different parts of the firm are kept apart so that information does not circulate freely and to prevent conflicts of interest. The term is especially common in areas such as brokerage, law firms and management consulting.

The term was coined in the United States following the
stock market crash of 1929. The U.S. government saw the need to maintain separation (or an information barrier)
between
investment bankers and brokerage firms. This was intended to limit the conflict of interest between objective analysis of companies and the desire to have a successful initial public offering. Rather than regulate for physical separation, or even prohibiting one company conducting both sorts of transactions, the government allowed such companies to maintain a "Chinese wall" as a form of gentlemen's agreement"


In an age where companies focus more on open-concept seating and incompany data banks, I find this concept rather fascinating.

2 comments:

Hurricane Bob said...

Finally, I've learned something useful on the blogs today. Thank you.

Fiona Kathleen Hogan said...

lol.
Hurricane Bob, you're more than welcome. :)