The financial markets will be remade this year in response to the credit crisis and the Madoff scandal…
Every institution will examine their procedures and risk profiles… nothing will be taken for granted…
From CFO.com… ~~~~ “The parent company of Standard & Poor’s intends to keep a closer eye on the doings of its beleaguered offspring. The McGraw-Hill Cos. announced the hiring of an “ombudsman” to monitor issues and concerns raised about the ratings agency, both internally and externally — reporting directly to McGraw-Hill chairman and CEO Harold McGraw III.
The position will be filled by a finance heavyweight: Ray Groves, whose résumé includes 17 years as chairman and CEO of Ernst & Young. After leaving E&Y in 1994 he served six years in various roles, including chairman, at Legg Mason Merchant Banking, and spent four years as chairman and president of Marsh Inc…. “~~~~
From Investment News… ~~~~ “The Securities Industry and Financial Markets Association has hired Leon J. Bijou as managing director and associate general counsel in a bid to expand its municipal bond expertise.
….“Leon’s background will be an asset to SIFMA as we enter the new year with a focus on issues in the municipal bond market such as liquidity, transparency, taxes and financing of state and local infrastructure,” Leslie Norwood, a SIFMA managing director and associate general counsel, said in a statement.” ~~~~
It’s not clear whether that these moves will truly enhance the stability of these organizations and the credit markets… more transparency and openness are needed… the bond markets were historically very dark markets and contributed to their instability… sunlight is an important remedy for the market’s ills… more light needed… err on the side of excess transparency…
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