Fecht, Falko; Hackethal, Andreas; Karabulut, Yigitcan - Deutsche Bundesbank - 2013
We study a conflict of interest faced by universal banks that conduct proprietary trading alongside their retail … clients. We investigate (i) whether banks deliberately push stocks from their proprietary portfolios into their retail … proprietary trading earn lower long-term portfolio returns than their peers. We present affirmative evidence on all three …