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David H. Feldman makes an important observation: A functioning market system depends on trust. And trust is a resource on which everyone relies but for which no one is singularly responsible ("Continuing scandal, loss of confidence," June 30).
To change our system, we must change the incentives. We could make auditors federal officials, as we do air traffic controllers, to guarantee their independence. A less controversial remedy could come from creating a business-financed fund from which all auditors would be paid. This would ensure examiners would receive no compensation from the companies they review.
These ideas sound radical only because Americans have increasingly abandoned the concept of protecting the social and economic commons. Even the mildest efforts to protect the common good are viewed with suspicion.
But the visible economy is connected to a hidden economy of trust. The longer we take to restore the trust economy, the more the markets - and the other parts of the visible economy that depend on them - will deteriorate.
Craig Cheslog
Oakland, Calif.
The writer is director of communications for Redefining Progress, a nonprofit group that studies economic and environmental sustainability issues.
David H. Feldman explained very well the extent to which trust in U.S. financial markets is threatened by the parade of recent scandals.
Not only must investors cast a doubtful eye on the accuracy of financial statements, we must also be watchful for potentially drastic conflicts of interest in our trading markets and remain alert to possible government and industry collusion on public policy.
New appreciation for stiffer and more forceful regulation may help, and some campaign finance reform may be better than none; however, citizen-shareholders bear responsibility to express more loudly their demand for ethical leadership.
The alternative would be, as Mr. Feldman predicts, a long-lasting and damaging loss of faith - in both industry and government.
Mark E. Klotzbach
Baltimore