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However, the increased volatility in equity markets has also been pronounced because of peculiar events: the integrity of financial analysts’ recommendations and the increased spread of fraudulent accounting practices. It is the latter that has struck the financial markets particularly hard in recent months. U.S. firms, such as Enron, WorldCom, Global Crossing and Xerox, have become household names not because of their services and products but for their alleged accounting abuses. Investors in these firms undertook investment decisions based on apparently false information. The fear is that only the top of the iceberg has been revealed and more unpleasant news is expected to fill the front pages of the daily newspapers. The fallout from the financial scandals has unearthed several dormant issues that twitch the nerves of financial markets. In turn, this has generated considerable discussion in the financial press, on the airwaves, and in the corridors of government buildings. While the issues are complex, the list of proposed solutions is long. This all suggests that consensus and reform will not be achieved overnight. Trust as an asset As in all walks of life, trust is a valuable attribute. Central banks, as well, value the importance of credibility and trust. Allow me a few minutes to explain why these qualities are important to the National Bank. At the same time, they can provide a good illustration as to why these same qualities are equally important for the private sector. Let me begin with what I mean by trust.