Second, the case highlights the question of adequate oversight of financial activities undertaken by non-financial corporations. Despite being the main dealer, market-maker, and liquidity provider in important areas of the energy and other derivatives markets, Enron was not required, by either regulators or market practice, to disclose information to its counterparties, or to set aside capital against its trading risks.
The Bank has done this by carefully balancing the need to lower rates to help foster vibrancy in economic activity and at the same maintain relatively higher real interest rates to sustain investor interest in the economy. 5.