Case | HBS Case Collection | October 1993

Analyst's Dilemma (A), The

by Joseph L. Badaracco Jr. and Jerry Useem

Abstract

A young investment banker returns home one night to find that her roommate and best friend has been laid off from Universal Bank because Universal is shutting down its capital finance group. Her roommate makes her promise to keep this information confidential because the news is not to be disclosed to the market for several days. The protaganist knows, however, that Universal's capital finance group is collaborating with her own investment bank on a leveraged buyout deal and that Universal's withdrawal could have potentially disastrous ramifications for the deal if her own investment bank is not notified immediately. She must decide whether to break her promise to her friend or to remain silent and expose her own company to great risk.

Keywords: Ethics; Values and Beliefs; Leveraged Buyouts; Conflict of Interests; Decision Choices and Conditions; Risk and Uncertainty;

Citation:

Badaracco, Joseph L., Jr., and Jerry Useem. "Analyst's Dilemma (A), The." Harvard Business School Case 394-056, October 1993.