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Old 13th Nov 2014, 11:11
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davidjohnson6
 
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Typically the people lending money to a company and people who own the shares as a long term investment have very different interests. What is good for the lender is sometimes very different to what the share investor wants to see. It can sometimes be a bad idea if these 2 perspectives get confused.

In many countries, there are strict laws that prohibit a bank from both providing large loans and also owning a significant proportion of the shares of a company. The aim is to try to prevent a conflict of interest.
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