Financial History Can Be a Good Teacher
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In response to "Quandary of Transparency" (April 7, 2009) by guest blogger Doug Miles, Ms. Maryls Appleton agrees that the past can be a good teacher, but only if we are open to learning. Read what governance professional Marlys Appleton has to say:
<< Doug, thanks for the reminders of these past events, particularly the Penn Central bankruptcy. Transparency and disclosure are sure to be the guide-phrases and values that will be operational as a result of this crisis. However, disclosure and transparency do not necessarily lead to accountability. A massive failure of governance has contributed to the current situation. I am interested in any thoughts you have as to how we can help assure that in a world of better transparency and increased disclosure, we also get better governance and accountability. What is that link between transparency and accountability? I am in total agreement that FASB's "bending" makes more less transparency, not more. It is the politicians, not just the executives, who have bullied the FASB into rethinking mark-to-market issues. This is akin to us looking at our 401(k) statements and saying, 'Well, they really are at par or 95, not where our statement puts them.' The lack of liquidity needs to be part of the pricing process. It is also necessary to acknowledge the dismal state of both the residential and commercial real estate markets, as well as the availability of credit. >>
Without a desire and willingness to improve when warranted, we are destined to go around and around, rather than moving forward.
