From Rober H. Herz, Chairman FASB, at the National Press Club:
Transparency is not just a buzz word or a cliché. It is a fundamental and absolutely essential attribute of sound financial markets. Relevant, trustworthy, and timely information is the oxygen of financial markets. Depriving markets of such information—or polluting the information—can have very adverse consequences.
And so additional systemic actions by others are also needed to improve disclosures and transparency at other levels—particularly those relating to the complexities and risks inherent in financial products, and to the information systems around the markets for structured securities and derivatives. Transparency to the American public around taxpayer funded investments and financial support of major U.S. companies is also essential.
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