Gurley argues banks face a multiple agency problem, serving buy-side clients rather than the companies going public.
“There's an area of study in economics called, the agency problem, and and there's a the variant of it called the multiple agency problem.”
Gurley explains top banks deliver worst execution because they serve buy-side clients, not the company going public.
“So you've got an agent who's looking after multiple parties, the company, but guess what? Also the buy side.”