Tuesday, April 29, 2003

The long-anticipated settlement that government regulators have wrested from U.S. investment banks is in, and the I-banks are now required to provide objective research to their clients. This is going to take some culture change, according to a New York Times article. It would seem that the bank-supplied research was largely regarded as a joke inside these firms, even though its value was consistently touted by securities sales reps. It's not something that should be entirely surprising, but it's a parable worth bearing in mind for companies of all kinds that are trying to establish content streams for their own customers. Content is oftentimes the cornerstone of building business relationships, relationships that are not easily repaired when trust in that content - and its producers - is broken. As it is, the I-banks have now set the stage for other content providers to take center stage in the race for trustworthiness- and profits.
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