Working Definition Working Definition episode 1: Transparency, with Tom Hoenig
Jul 20, 2025
In this insightful discussion, Tom Hoenig, an esteemed economist and former vice chairman of the FDIC, dives into the theme of transparency. He shares valuable experiences from his time at the Federal Reserve, emphasizing its critical role during organizational change. The conversation explores how honesty builds public trust, the challenges of transparency in decision-making, and the balance of power in governance. Hoenig argues that genuine transparency fosters accountability, creating a stronger relationship between institutions and the public.
AI Snips
Chapters
Transcript
Episode notes
Leading A Painful Institutional Transition
- Tom Hoenig recounts transforming the Kansas City Fed from a paper-based to an electronic-payments institution that required major layoffs and hiring changes.
- He credits frank, inclusive communication and honesty with employees for the successful transition over several years.
Transparency Requires Honest Limits
- Hoenig ties transparency to careful promises and honesty, warning against sins of omission that resemble lying.
- He emphasizes telling people what you can and why you cannot say everything to avoid hiding the ball.
Public Direction Makes Transparency Work
- Transparency is directional and public: you are transparent to others and it builds trust in institutions and relationships.
- Hoenig argues transparency underpins acceptability and trust when institutions consistently explain and deliver on policies.