I will say a few words about each of these. The first priority is to improve transparency. Many highly structured products at the centre of the turmoil were far from transparent, and the disclosure by their originators was often wanting. The substitution of credit ratings for adequate transparency promoted herding upon downgrades and common valuation errors across a range of asset classes.
It also eliminated investor pressure for better disclosure, contributing to today's broken markets. Progress has been made, including the Financial Stability Forum's bank disclosure template and the Bank of Canada's disclosure requirements for asset-backed commercial paper pledged as collateral. Ultimately, if investors are truly doing their credit homework, they will demand better disclosure. Otherwise, they will again pay the price.