Summary

All of the participants in the governance system need to work hard to restore investor confidence. Just having regulators and politicians work to fix the system is not convincing. Corporate participants are clever enough to eventually undo or avoid many of the rules and policies that the government can enact. Therefore, investors want to see the corporate participants themselves working for improvement. Investment banks need to persuade us that they are aligning themselves better with the needs of investors who purchase the securities they help issue. Through executive groups and associations, CEOs need to both speak out against scandalous behavior and begin to police themselves . Analyst and accounting membership organizations must be vocal with their apologies and solutions. While these groups have been working in the background to improve incentive systems, they are far too quiet about it publicly . It is important to communicate the solutions for fixing the system and restoring confidence. However, in the end, it is a history of behavior and actions that truly gain trust. Investor confidence will be restored when the corporate governance system has proven itself trustworthy.