Lack of transparency breeds corruption from "summary" of The Money Culture by Michael Lewis

The less you know about how a financial institution makes its money, the more likely it is to be making money at your expense. There is a reason why the most successful companies in the financial world go to great lengths to keep secret what they do. They would rather not have you know. When the lights are off, the roaches come out. Lack of transparency breeds corruption. If you can't see what someone is doing, you can't stop them from doing it. And when there is no one watching, people tend to act in their own self-interest, even if it means taking advantage of others. In the world of finance, where billions of dollars are at stake, the temptation to cut corners and take advantage of information asymmetry is strong. Bankers, traders, and executives are not immune to the lure of easy money. And when there are no consequences for unethical behavior, the incentive to act in bad faith only grows. Transparency is the antidote to corruption. When everyone can see what is going on, there is less room for shady dealings. By shining a light on the inner workings of financial institutions, we can hold them accountable for their actions. But as long as the status quo remains shrouded in secrecy, corruption will continue to thrive. In the end, it is up to us as consumers and investors to demand transparency from the financial industry. We have the power to drive change by choosing to do business only with institutions that operate with integrity and openness. The more we insist on transparency, the less room there will be for corruption to take root. And in a world where money talks, it is our voices that can make the difference.

The Money Culture

Michael Lewis

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