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  • April 2022 (Revised August 2022)
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Conflicts of Interest at Uptown Bank

By: Jonas Heese
  • Format:Print
  • | Language:English
  • | Pages:24
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Abstract

In 2013, two employees debated whether to blow the whistle on their employer, Bell Bank, after completing an internal review that revealed undisclosed conflicts of interest. Bell Bank’s Asset Management business disproportionately invested clients’ money in Bell Bank’s mutual funds over funds managed by other banks, letting Bell Bank collect additional fees—and the bank had not disclosed this conflict of interest to clients. Both employees agreed that failing to disclose the conflict was a problem, but beyond that, they saw the situation very differently. One employee, Neel, perceived the internal review as a good-faith effort by Bell Bank’s senior management to identify and address the problem. The other, Akash, thought that the entire business model was problematic, even with a disclosure, and believed that Bell Bank may have even broken the law. They considered their options: Should they escalate the issue internally or report it to Bell Bank’s board of directors? Should they go even further and report their findings to the U.S. Securities and Exchange Commission? What would the potential risks and rewards of speaking out be?

Keywords

Whistleblower; Whistleblowing; Mutual Funds; Conflicts Of Interest; Decision Making; Decisions; Judgments; Ethics; Moral Sensibility; Values and Beliefs; Finance; Financial Institutions; Banks and Banking; Financial Management; Investment; Investment Funds; Governance; Corporate Accountability; Corporate Disclosure; Corporate Governance; Governance Compliance; Governance Controls; Policy; Law; Legal Liability; Social Psychology; Motivation and Incentives; Perception; Perspective; Trust; Financial Services Industry; North and Central America; United States

Citation

Heese, Jonas. "Conflicts of Interest at Uptown Bank." Harvard Business School Case 122-022, April 2022. (Revised August 2022.)
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About The Author

Jonas Heese

Accounting and Management
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Related Work

    • September 2022
    • Faculty Research

    Conflicts of Interest at Uptown Bank

    By: Jonas Heese
    • April 2022 (Revised August 2022)
    • Faculty Research

    Conflicts of Interest at Uptown Bank

    By: Jonas Heese
Related Work
  • Conflicts of Interest at Uptown Bank By: Jonas Heese
  • Conflicts of Interest at Uptown Bank By: Jonas Heese
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