Investment banks are guilty of conflict of interest when they a) pressure their analysts to produce research favorable to their client firms. b) permit executives of client firms to alter analysts' research on their firms. c) prohibit analysts from making negative or controversial comments about client firms. d) all of the above.

The correct answer here is option D.

Explanation:

Investment banks are special kind of financial institutions or intermediaries who are concerned with raising capital for other companies.

They also perform advisory based transaction services on the behalf of corporations, individuals and government.

In performing these functions, they often are found guilty of pressurizing analysts to produce favorable research for their clients, attempts to alter research of client's firm and permitting executives of client's firm to do so. They also get involved in prohibiting analysts from making any negative or controversial comments about client they are serving.

They do all these to maintain credit worthiness of their client firm, so that the client is able to procure capital.

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