Senior chief in transparency call
Josef Ackermann's private speech at LSE is to be circulated to banking regulators and key clients
Deutsche
Bank’s CEO has made a call for greater transparency and off-balance sheet
disclosure to curb the loss of investor confidence in complex finance.
Josef Ackerman told an audience at the London School of Economics that the
banking industry’s operations and regulatory system needed to be reviewed.
He said that banks had to make complex structured products – such as mortgage
securities – more transparent so as to reduce investors’ dependency on the
ratings of credit agencies, the
FT
reported.
‘Improved transparency is decisive, including disclosure of off-balance-sheet
exposures, such as structured investment vehicles,’ said Ackermann.
The bank is believed to be circulating Ackermann’s private speech to key
clients and regulators, as it marks efforts made by senior individuals behind
the scenes to manage the credit squeeze and the most
high-profile call for reform.
Further reading:
Deutsche
Bank CEO calls for greater investment bank transparency