The U.S. government’s recent bank stress tests were all about clarity. With hard data and clear facts, they shone a bright light on the shadowy uncertainties of complex financial transactions.
The question now is: Will this sort of clarity be a part of doing business in the financial industry?
Bank regulators in the European Union should look at the U.S. example and make results of their upcoming stress tests of European banks transparent to the public.
Currently, they intend to inform only the EU finance ministers and executive agencies.