Banks Need to 'Fess Up on Risk: G7 Panel

Forum of regulators says transparency needed to end crisis
By Kevin Spak,  Newser Staff
Posted Mar 29, 2008 5:14 PM CDT
In the current liquidity-starved market, banks have more risks than ever.   (Shutterstock)
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(Newser) – Top financial regulators today challenged banks to come clean about risks they face, the Wall Street Journal reports. The Financial Stability Forum, a worldwide team of financial honchos—including several central bank chiefs—concluded that “hording of liquidity” was leading to “severe strains” in the lending market. Only greater transparency, they said, could restore lending confidence.

“There's a very strong call to do everything possible to boost transparency as quickly as possible,” one economist said. The regulators called for better reporting from hedge funds and sovereign wealth funds, and vowed that central banks would continue pumping liquidity into markets “as long as needed.” Commissioned by the G7, the panel will report at its Washington meeting next month, Bloomberg reports.