If there is one group of people that has benefited from the credit crisis, it is political and economic commentators. Overpaid bankers, sleeping bureaucrats, massive frauds, arguments between the various authorities and so on have been targets too good to miss; in golfing parlance, it’s a gimme. And the best thing of all for these lucky people is that they get to opine all the way from beginning to end of the crisis without having to worry about any of the implications.
But the regulators and legislators do worry. There has been an avalanche of opinion, research and reporting from all those involved in regulating and overseeing the public markets. Treasurers and others who have to work with the consequences of potential change need to know what is driving their concerns.
The most simple question of all is whether the various changes suggested – especially by the politically motivated – are designed to address the way in which markets operate or to appeal to a sense of popular retribution. Instances where all markets and all players (ratings agencies, OTC derivatives, and so on) are tarred with the same brush could lead to legislative or regulatory outcomes which are debilitating to treasurers and their service providers alike.
The ACT is trying to make its voice heard not just in our core areas of competence but more generally in the financial debate, as a supporter of reasoned and considered reform which can be of benefit to all those engaged in business and finance. Our education and training is designed to offer all students and participants a balanced view of treasury and finance management.
You might well ask whether those sitting in judgement are themselves fully competent to do so. Or are they simply seizing on what appears to be the easiest course, or even just taking an opposite position to that of the sitting government?
Treasurers are ideally placed to help their colleagues in any business sector or activity to cut through the cant. After all, as the Walker Report says, it’s all about challenge, challenge, challenge.
PETER MATZA
Head of publishing, ACT