You are here
Stakeholders and Local Government Transparency
Thursday, August 2nd, 2012
Robert Wechsler
Corporate executives have obligations not only to stockholders, but
also to other stakeholders, including customers, creditors, and the
greater community. However, government officials, at least from the
government ethics point of view, have overwhelming obligations only
to members of their immediate community. Is this right?
What made me think of this was an article in yesterday's New York Times with the headline, "S.E.C. Suggests Reforms of Municipal Bond Market." One of the S.E.C.'s suggestions was that investors in municipal bonds should have more information, starting with audited financial statements, which are required from all corporations, but not from municipalities. Requiring this would mean getting Congress to act.
But shouldn't transparency apply not only to municipal residents, but also to municipal investors? Without investors (primarily wealthy individuals and ordinary people through their pension plans), it would be difficult for a city, county, school system, or agency to purchase police cars or fire engines, or build new schools and other government buildings.
Why don't local government associations sit down to draft a model law on transparency to municipal bond investors, based on S.E.C. recommendations? The information that would be required would also be useful to local citizens. Investors and citizens shouldn't have to wait for Congress or state legislatures to act.
Robert Wechsler
Director of Research-Retired, City Ethics
---
What made me think of this was an article in yesterday's New York Times with the headline, "S.E.C. Suggests Reforms of Municipal Bond Market." One of the S.E.C.'s suggestions was that investors in municipal bonds should have more information, starting with audited financial statements, which are required from all corporations, but not from municipalities. Requiring this would mean getting Congress to act.
But shouldn't transparency apply not only to municipal residents, but also to municipal investors? Without investors (primarily wealthy individuals and ordinary people through their pension plans), it would be difficult for a city, county, school system, or agency to purchase police cars or fire engines, or build new schools and other government buildings.
Why don't local government associations sit down to draft a model law on transparency to municipal bond investors, based on S.E.C. recommendations? The information that would be required would also be useful to local citizens. Investors and citizens shouldn't have to wait for Congress or state legislatures to act.
Robert Wechsler
Director of Research-Retired, City Ethics
---
Story Topics:
- Robert Wechsler's blog
- Log in or register to post comments
