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The Pulse: How Will Recent Scandals Impact Trust? Scandals involving Bernie Madoff and Satyam Computer Services have put a spotlight on the issue of trust in the markets. What is your firm doing to reaffirm trust with clients, lenders and/or investors?

Article Excerpt
Byline: Editorial Staff

Trust starts with knowing your client and your client knowing you. Two-way due diligence is critical to long-term business relationships. Whenever a client of our firm proposes to engage in an investment with an entity that is not well known, we promptly conduct background research on its principals. This includes reviewing the securities files in the FINRA Central Registry Database, proceedings with the Securities Exchange Commission, litigation and bankruptcy filing resources and even general news.

- Mark Reuter, Partner,

Keating Muething & Klekamp

Our answer is simple: transparency. We provide a document to our clients that clearly explains the roles and expectation each of us should have in the transaction. We make it a point to meet with stakeholders in the project so that everyone is aware of the projects' status. We keep our agreement simple so that there is enough understandable language that provides protection for both parties and, perhaps...

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