The NYT carries a long article on how M&T Bank lost $80 million on an investment vehicle peddled to them by Deutsche Bank. M&T Bank is suing claiming it was "duped".
The article contains this jaw dropping quote
Some investors say the collapse of deals like Gemstone is a wakeup call for money managers. “It’s finally dawning on market players and investors that Wall Street’s interest and those of investors have never been aligned,” said Thomas C. Priore, chief executive of ICP Capital, an investment firm that specializes in credit markets. “Investors are beginning to say to themselves: ‘Hey, there is someone who will benefit if this doesn’t go well.’ ”
Wow, not being aware of that fact and being a money manager imo is akin to a batter not knowing that the pitcher's job is to try to strike him out.
Put me down as agreeing 100% with this fellow:
Others on Wall Street say that investment banks’ potential conflicts should have been apparent. “As an institutional investor, your first duty is to do your own work,” said Ron D’Vari, who is chief executive of NewOak Capital and previously managed the C.D.O. business at BlackRock. “You have to do your own due diligence.”