Regulators can't ensure clarity, only encourage it

In the aftermath of the subprime debacle, regulators globally have been quick to condemn the lack of transparency in many of the financial products used in securitisation transactions, the markets for which have remained illiquid since early August.

The products that investors have avoided post-credit crunch and were so quick to buy before 9 August, are certainly opaque. But this does not mean they are not transparent in the sense that there was a lack of disclosure, or that the originators were

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