German Finance Minister Wolfgang Schäuble, a member of Chancellor Angela Merkel's conservative Christian Democrats, vowed in a Sunday evening television interview that ... banks need to submit to "clear controls and transparency for all parts of the banking business."As regular readers know, "transparency for all parts of the banking business" is another way of describing detailed disclosure of each bank's current assets and liabilities (including off-balance sheet exposures).
The FDR Framework is the backbone for a 21st century financial system. Under this framework, governments ensure that every market participant has access to all the useful, relevant information in an appropriate, timely manner. Market participants have an incentive to analyze this data because they are responsible for all gains and losses.
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Monday, October 17, 2011
Did Germany and Wolfgang Schauble just call for detailed disclosure of each bank's assets and liabilities?
In a Der Spiegel article,
Great, great post! It’s something I have never thought about, really, but it makes a whole lot of sense. Thanks for sharing..........
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