Transparency in Financial Markets

Just a quick note as the G-20 London Summit nears and talk of transparency as a remedy for the current instability and lack of trust wrecking the financial system, is everywhere. The Economist did a focus story on this issue looking at the pros and cons of transparency in February. I wanted to share with you some related comments in the debate expressed in a letter by TI’s Chair Huguette Labelle to The Economist on why the right dose of transparency can inject trust into the system. The letter states:

Trust in financial markets vanished when the lack of transparency became apparent; it is only through transparency that investor confidence and public trust can be won back.

So looking ahead, if the reforming the financial system is one of the key objectives for the London Summit, as Alistair Darling, the British Chancellor states, securing greater transparency, public accountability and integrity in order to restore public trust needs to be an essential keystone.

What are your thoughts?

Whatever way financial markets will go, transparency is key.