Opaque supervision doesn't bother me when I look at the insurance industry. Insurance supervisors in some states never put anything in writing, because it is all FOIAable by plaintiffs' lawyers. I suppose that they rely on interpretive dance, or something.
What does bother me is that the opacity never goes away. Market-moving information dissipates in a year or so. CEO tenures are (or perhaps should be) in the five or seven-year range, which is pretty much a normal statute of limitations. Fed governors get 14 years. But CSI is forever.
Precisely this. CSI seems to me essential if conversations are going to be productive. But not forever. The accountability mechanism, for both banks and supervisors, goes completely missing in that world.
Opaque supervision doesn't bother me when I look at the insurance industry. Insurance supervisors in some states never put anything in writing, because it is all FOIAable by plaintiffs' lawyers. I suppose that they rely on interpretive dance, or something.
What does bother me is that the opacity never goes away. Market-moving information dissipates in a year or so. CEO tenures are (or perhaps should be) in the five or seven-year range, which is pretty much a normal statute of limitations. Fed governors get 14 years. But CSI is forever.
Precisely this. CSI seems to me essential if conversations are going to be productive. But not forever. The accountability mechanism, for both banks and supervisors, goes completely missing in that world.