Darien

We discussed this previously. The key sentence here is “The CEO wnats Batts Bros to underwite the stock issue”, which means you need to know what Kim’s job is before you can answer the question which makes it a pretty crappy question. Kim is doing due diligence for his Batts Bros to see if Batts Bros should take a large position in a new equity issue to sell it to the general public. The conflict of interest here is that Kim would get do poor due diligence because of all the good stuff he is getting from the oil and gas company and then screw his own company. If his own company has disclosure and thinks that the stuff that he is getting does not constitute a risk, then he has no ethical problem.
Personally, I think one of the Batts Bros needs to squash this.