During 2014 news stories emerged that eventually revealed and caused General Motors (GM) to admit that the corporation took more than ten years to recall millions of vehicles because of an elaborate cover-up related to defects in its engine ignition switches. Beyond the tragedy of at least 100...

The ethical issues that financial professionals face are no different from the ethical issues in any profession — or, indeed, the day-to-day dilemmas we all face. These issues are readily resolved through the use of three simple questions: Does this violate the law? Is this honest? What if I...

The distinction between brokers and investment advisers has become increasingly blurred over the past 30 years. In a 2011 study, the US SEC recommended that there be one uniform standard for both broker/dealers and investment advisers. In addition, all investment professionals could benefit from...

SAC Capital Advisors LP (SAC) was once a $12-billion hedge fund with one of Wall Street's best records for performance. Steven A. Cohen, the owner and namesake of SAC, was the subject of admiring profiles in everything from the New York Times to Vanity Fair. He was once number 36 on Forbes' list...

What happened to ethical behavior in the era of the dot-com, the bubble, Enron, and WorldCom? We were not involved in close ethical calls in these cases. The lapses were great, the conflicts many, and the cost, in terms of investor trust, nearly unspeakable. Each time scandals occur, market...