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Yet the onus should be on banks to prove their new toys aren't simply hiding risk behind a complex web of arcane, yet fragile, financial innovations.
The builder can also fool the inspector; the person hiding risk has a large informational advantage over the one who has to find it.
Well, you could say that American bankers, empowered by a quarter-century of deregulatory zeal, led the world in finding sophisticated ways to enrich themselves by hiding risk and fooling investors.
Similar(52)
Chinese banks were not, in the main, exposed to toxic Western debt and, perhaps more importantly, never adopted dangerous Western methods of hiding risks.
And firms stand to lose more in liability or reputation for downplaying or hiding risks than they can gain from allaying consumers' concerns.
However, the earnings goal turned out to be unachievable without breaking rules and hiding risks".
So while the seeker is seeking, they have to come out of hiding, risking their safety.
That worst-case forecast highlights another potential hidden risk.
For too long, new-economy corporate creeps and their accounting Heeps have hidden risk in arcane off-the-books dealing.
They made huge losing bets with our retirement funds while conspiring to hide risk and falsify asset values.
Technology firms could republish financial data for investors' decisions, analyze it to find hidden risk, and automate reporting to reduce compliance costs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com