From Lord Eatwell and Mr Robert Reoch.

Sir, With the troubled asset relief programme now passed by the US Congress, it is time to consider the substance of long-term regulatory reform with more care. A head of steam is building up behind the proposition that “greater transparency” should be a dominant reform theme. But what is meant is not clear: does this refer to improved availability of market information or to enhanced understanding of the structure of complex instruments? In neither case will “greater transparency” reduce systemic risk in financial markets. Indeed, in some cases greater transparency could make things worse.