In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘european banking union’

Brexit!? France and Germany cannot wait

Posted by seumasach on March 1, 2016

This is essential background for understanding the EU referendum and particularly the rather surprising decision by Cameron to support a “Yes” vote despite having no opt-out on European banking regulations. But a “No” vote would be even worse from a City point of view as this article makes clear. Still, there will be winners and losers and clear and bitter divisions are emerging in the British  ruling class which we haven’t seen since the period following the “loss” of the USA in the American Civil War by way of the defeat of the Confederacy. That period of internecine warfare in the British elite was eventually resolved by the expedient of outsourcing the empire via a truly massive flow of capital into the USA. Similarly, today we face a historic transformation of the City of London although, this time,  based on massive capital inflows through our Comprehensive Strategic Partnership with China and the new relationship with Europe which corresponds to it. The strong support for a “Yes” vote by Goldman Sachs and JPMorgan suggests the possibility that London could also serve as a conduit to Wall Street for Chinese investment via those chosen vehicles.

Gefira

19th February, 2016

If London decides to leave the European Union nobody in Europe will even notice. Great Britain is an entirely separate country, isolated from the European Union and does not participate in the Euro or Schengen Agreement. The European Union as a political platform is disintegrating and becoming more and more irrelevant and will be displaced by the European Monetary Union (EMU).
The center of power in Europe has shifted from the EU to the EMU and London politicians are fully aware of it. A Brexit will accelerate the process of political integration of the EMU members and make the EU politically less significant.

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HSBC ‘taking too long to tackle financial crime’

Posted by seumasach on February 22, 2016

British banks are under fire from all sides. On one side their is threat of eurozone regulation and the planned banking union, on the other are the US regulators. Another British bank, Barclays is engulfed in scandal. Interestingly, Goldman and JPMorgan are funding the “Yes” campaign, while some major hedge-funds are backing”No”. Meanwhile the Chinese are busy constructing their alternative City in London’s Docklands.

Guardian

22nd February, 2016

HSBC is taking too long to tackle financial crime, US authorities have said, with an official monitor installed at the bank after a money-laundering scandal four years ago raising “significant concerns”.

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Johnson adviser: protections for City “unimpressive

Posted by seumasach on February 22, 2016

Boris Pensions Tsar: EU Deal ‘Unimpressive’

Sky News

Protections for the City of London secured by David Cameron as part of his deal to reform Britain’s membership of the European Union (EU) are “unimpressive” and amount to “no more than a whingers’ charter”, one of Boris Johnson’s key advisers has said.

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Cameron spins the City’s demise

Posted by seumasach on February 21, 2016

 

Cailean Bochanan

21st February, 2016

It is unusual for the British establishment to risk a consultation with the people unless major changes are underway- changes which are sufficient to provoke divisions in the establishment itself. It goes without saying that the negotiations with the EU are not essentially about child benefit for Polish families living in the UK. They are about “sovereignty” although in a very limited sense: the “sovereignty” of the City of London. The deal struck triumphantly by Cameron is revelatory. It shows that conflict within the establishment  concerns the least bad option for the City: whether to face exclusion from the EU market and displacement by Paris or Frankfurt as Europe’s leading financial centre or to remain inside Europe and to take up arms against a sea of Eurozone banking regulations and by opposing end them. That is the question!

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Posted in Battle for Europe, UK economy | Tagged: , , , , , | 2 Comments »

Yanis Varoufakis: Greece is Finished

Posted by seumasach on February 19, 2015

Varoufakis’ thinking is perfectly in tune with that of Michel Barnier, the European commissioner who devised the EU’s banking union plan. The three main points of Varoufakis’ plan correspond to those of the banking union which will come into full force by the end of 2015, Those are, firstly, a “bail in ” of the banks instead a “bail out”, whereby creditors and shareholders of the banks take the rap rather than taxpayers. This process to be overseen at pan-European level rather than at the level of the nation states. Secondly, mutualisation i.e. Eurobonds and , thirdly, reconstruction of real economy through an pan-European investment programme. It is the opposition of the City of London to this “dirigiste” project drawn up by the avowed Gaullist, Barnier, which accounts for the fact that no one hears anything of it. What Greece is doing now should help bring it centre stage and shift the balance of power in Europe away from atlanticist-style finance capital towards precisely such a centralized and dirigiste model.

Naked Capitalism

26th June, 2012

Yves here. Yanis just posted an interview with ABC (Australia’s BBC) which describes how Greece cannot be salvaged. Its fate will be determined at the eurozone level, and its possible outcomes range from bad to awful. You can watch the conversation here. Transcript below:

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Germany gives green light for banking union plans

Posted by seumasach on July 11, 2014

To minimize the expense to euro zone taxpayers, European Union policymakers have drawn up a law under which shareholders, creditors and very large depositors will lose money first in the event of a bank failure.

For some reason many commentators fail to distinguish between bail-in, as is the case here,  and bailout, as we saw in US/UK in 2008. The above makes it clear.

Independent.ie

11th July, 2014

Germany’s cabinet has approved a package of draft laws which effectively give the go-ahead to Europe’s plans for banking union – the main confidence-building response to the crisis in the financial sector, a government source said yesterday.

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European court rejects UK challenge against EU short-selling ban

Posted by seumasach on January 29, 2014

Philippe Lamberts, a Belgian Green MEP, said the ruling was “excellent news for those who believe that financial markets need regulation at EU level”.

FT

22nd January, 2014

Britain suffered a serious defeat in its campaign to limit the power of EU financial watchdogs after Europe’s highest court dismissed London’s attempt to prevent Brussels from winning powers to ban short selling.

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Posted in Battle for Europe, Financial crisis | Tagged: | Leave a Comment »

EU forges bank bailout deal to protect taxpayers

Posted by seumasach on June 27, 2013

“Bail-in is now the rule,” Ireland’s finance minister, Michael Noonan, said. The rules put an end to moral hazard by making it clear that banks would suffer before the government might come in to help, if at all, he said. “This is a revolutionary change in the way banks are treated.”

Guardian

27th June, 2013

 

The European Union has struck a deal on rules establishing who will pay for future bank bailouts without taxpayers having to foot the bill.

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