Independent confirmation that disclosure is the solution to French banking crisis

In a Telegraph article, the disclosure solution recommended under the FDR Framework for the French banking crisis was independently confirmed as the solution for ending an opacity fueled, fear driven crisis.

Regular readers know that under the FDR Framework, banks would be required to disclose all the useful, relevant information in an appropriate, timely manner.  For banks, this means they would have to disclose their current asset and liability level data.

It is only with this data that market participants can do their own independent analysis on a bank's solvency.

It is only with disclosure of this data that market fears of the worst can be replaced with knowledge of the facts.

Lord Myners, the former fund manager [and City minister]... called for European banks, which have been at the centre of the storm, to be more honest to investors and increase levels of disclosure of the sovereign debt they are holding. 

A call for disclosure of current asset-level data.

His calls on disclosure were echoed by Georges Pauget, an adviser to the French government, who said banks must be more open with investors if they are to end the market fears that have led their share prices to collapse in recent weeks. The comments from the two men come after a wild week in global stock markets. 

The nadir came last Wednesday, when investors moved strongly against Societe Generale, France's largest bank, forcing its shares down as much as 20pc. As a result, European regulators chose to ban shorting on banks in France and three other countries.... 

Lord Myners' calls for wider disclosure were echoed by Mr Pauget, the former chief executive of Credit Agricole, who said banks should move quickly to give better disclosure of their funding positions to reassure the markets they are well-financed. 

A call for disclosure of current liability-level data.

"They have to provide more information. Banks have to give more information on liquidity," said Mr Pauget. He went on to say there was a growing need for all banks to give more details of their net stable funding ratios, which show the proportion of a bank's assets that are financed with longer-maturity debt. 

His comments come amid concern that the UK's largest banks are on a collision course with the FSA over the need for more detailed disclosure of the amount and type of sovereign debt each is holding.