IMF – World Bank meetings: US – Germany clash instituted, anti-globalization prospects visualized

IMF/World Bank annual meetings in Washington, U.S., October 2016. AM16 CNN Debate on the Global Economy
International Monetary Fund Managing Director Christine Lagarde (L) and German Finance Minister Wolfgang Schauble participate in a CNN Debate Seminar on Global Economy October 6, 2016 at part of the 2016 IMF/World Bank Annual Meetings in Washington, D.C. (IMF Staff Photo/Stephen Jaffe).

This year’s annual meetings of the IMF – World Bank Group in Washington D.C., which kicked off on Thursday 6 October, turned out to be an all out financial war of words between the United States and Germany. In the middle of it stands the battered Deutsche Bank. For a start, there was a confrontation […]

Brexit casts a shadow over the LSE – Deutsche Börse merger: a tracer of how or if brexit is to be implemented

Deutsche Börse. The main building in Frankfurt am Main. No need to say that last week the London Stock Exchange Group plc (LSEG) shareholders approved the merger with the German bourse with the astonishing 99.98%. It is clear that, after 23 June, London begs for the merger. (Deutsche Börse Audiovisual Services).

One of the most direct and important consequences of the Brexit vote is the uncertainty it casts on the merger of Europe’s largest stock exchanges and clearing houses, the London Stock Exchange and the German bourse in Frankfurt, the Deutsche Börse. The two mammoth institutions, the double sun of Europe’s financial universe, last March agreed […]

Pumping more money into banks but leaving them unregulated doesn’t help

End of the signing ceremony of an EU/China key partnership on 5G: handshake between Miao Wei, Chinese Minister for Industry and Information Technology, on the right, and Günther Oettinger, Member of the EC in charge of Digital Economy and Society, 2nd from the left, in the presence of Ma Kai, Chinese Vice-Premier, 2nd from the right, and Jyrki Katainen, Vice-President of the EC. Date: 28/09/2015. Location: Beijing - Diaoyutai State Guesthouse. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Olli Geibel.

On Thursday 25 February, this newspaper concluded that “the other major central banks in Europe, China, Japan and elsewhere appear ready to fill the gap that the Fed plans to leave in the ‘money for nothin’ game”. This week’s developments completely justified this prediction. The immediate result is a new appreciation of the dollar with […]

Big world banks to pay $ 4.95bn for cheating customers; Is it a punishment or a gentle caress?

The City, London’s financial district where the headquarters of major banks are based. The Committee of European Banking Supervisors (CEBS) is also based in this area. (European Council – Council of the European Union Newsroom, snapshot from a video footage)

Last week five of the world largest banks, JPMorgan, Barclays, Citigroup, Royal Bank of Scotland and Union de Banques Suisses were fined by the American magistrates a total of $ 4.7 billion for rigging interest rate benchmarks. The banks had been setting those standards by themselves for five years after 2007. In another case the […]

Is it impossible to place the banks under control?

Michel Barnier, Member of the EC in charge of Internal Market and Services (on the right), and Erkki Liikanen, Governor of the Bank of Finland, Member of the Governing Council of the European Central Bank and Chairman of the High-level Expert Group on structural aspects of the EU banking sector, gave a joint press conference to present the main findings of the Group. Here the Commissioner looks like trying to overshadow the central banker. (EC Audiovisual services, 02/10/2012).

Within the next few weeks the European Commission is expected to announce a proposal for a structural reform in the banking sector. The declared target is to make sure “that banks do not remain or become too-big, too-complex or too-interconnected to fail”. In announcing its intentions on this grandiose plan, the EU’s executive arm states […]

The EU Commission lets money market funds continue the unholy game of banks

Michel Barnier, Member of the EC in charge of Internal Market and Services, gave a press conference on the adoption of the communication on shadow banking and proposes draft regulation on money market funds. (EC Audiovisual Services, 4/9/2013).

The European Commission adopted yesterday a proposal for measures on shadow banking introducing new but quite loose and thus ineffective rules and controls for money market funds (MMFs). This is a parallel financial system created by the major banks in order to avoid even the few controls and restrictions that the official banking system has […]

Germany’s fiscal and financial self-destructive policies

International Monetary Fund Managing Director Christine Lagarde (R) speaks the German Finance Minister Wolfgang Schäuble (L) during a break from the IMFC meeting as Finance Ministers and Bank Governors meet at the IMF Headquarters April 20, 2013 in Washington, DC. The ministers and governors are attending the IMF/World Bank Spring Meetings in Washington. (IMF Photo/Stephen Jaffe).

IMF Mission’s “Concluding Statement” (Article IV Consultation) on the German economy which was published yesterday, contains almost the same basic recommendations as the European Commission’s assessment aired at the Semester Press Conference in Brussels on 29 May. Both reports had references to Germany’s over stretched fiscal consolidation (meaning unneeded austerity) and the need to increase […]

Draghi: Germany has to spend if Eurozone is to exit recession

Mario Draghi, President of the European Central Bank, (EC Audiovisual Services).

Mario Draghi, in a historic speech delivered yesterday in his home country, bravely surpassed the limits of his office as President of the European Central Bank, and upon receiving an honorary degree in political science, from the Luiss “Guido Carli” University in Rome, he warned the European leaders that in order to safeguard the European […]

Switzerland to introduce strict restrictions on executive pay

Handshake between Enda Kenny, Irish Prime Minister, 2nd from the left, and Michel Barnier, Member of the EC in charge of Internal Market and Services, on the right, in the presence of Eamon Gilmore, Irish Deputy Prime Minister and Minister for Foreign Affairs and Trade, on the left, and José Manuel Barroso, President of EC. (EC Audiovisual Services).

Michel Barnier, European Commissioner for Internal Market and Services, speaking recently during the 11th Annual Conference of the European Financial Services, revealed his frustrating experience from this years’ Davos gathering. On that occasion Barnier had the opportunity to meet the leaders of the world financial industry. Talking with them, he said he understood they are […]