The Economist (January 21, 2012)
The concept of limited liability, which protects shareholders, “is one of the greatest wealth-creating inventions of all time.” In many places, however, companies can be set up to hide or disguise the ultimate owners. “This is of great use to wrongdoers, and a huge headache for those who pursue them.” Both the World Bank and the OECD argue that the identities of owners should be disclosed. The Economist agrees. “Anyone registering a limited company should have to declare the names of the real people who ultimately own it, wherever they are, and report any changes. Lying about this should be a crime.”
The concept of limited liability, which protects shareholders, “is one of the greatest wealth-creating inventions of all time.” In many places, however, companies can be set up to hide or disguise the ultimate owners. “This is of great use to wrongdoers, and a huge headache for those who pursue them.” Both the World Bank and the OECD argue that the identities of owners should be disclosed. The Economist agrees. “Anyone registering a limited company should have to declare the names of the real people who ultimately own it, wherever they are, and report any changes. Lying about this should be a crime.”
Financial Times (April 3 & March 29)
A debate between former Fed Chairman Alan Greenspan and Representative Barney Frank is taking place in newsprint. In a March 29 editorial, Greenspan writes that the global financial system is too complex and “unredeemably opaque” for regulators to succeed. As a result, Dodd-Frank would “create the largest regulatory-induced market distortion since America’s ill-fated imposition of wage and price controls in 1971.”
On April 3, the joint sponsor of the Dodd-Frank Act replied “Alan Greenspan suggests we should not even have tried.” Frank believes we have the tools, ability and responsibility to overcome the complexity. “Policymakers must ensure that whatever its size, the financial sector is operating transparently under clear rules that protect taxpayers and promote the stability and growth of the broader economy.”A debate between former Fed Chairman Alan Greenspan and Representative Barney Frank is taking place in newsprint. In a March 29 editorial, Greenspan writes that the global financial system is too complex and “unredeemably opaque” for regulators to succeed. As a result, Dodd-Frank would “create the largest regulatory-induced market distortion since America’s ill-fated imposition of wage and price controls in 1971.”
On April 3, the joint sponsor of the Dodd-Frank Act replied “Alan Greenspan suggests we should not even have tried.” Frank believes we have the tools, ability and responsibility to overcome the complexity. “Policymakers must ensure that whatever its size, the financial sector is operating transparently under clear rules that protect taxpayers and promote the stability and growth of the broader economy.”
Tags: Dodd-Frank, Financial regulation, Frank, Greenspan, Transparency
