Discredited Former Troika Members & Greek Economics

The Troika of the European Commission, European Central Bank & International Monetary Fund whom history will judge unfavourably, are part of the festering problem that is Greece. Even the IMF now owns-up to the established fact that the Troika has mishandled the problem of Greece, in admitting that the policies rigidly imposed were principally wage cuts & uncompromising austerity, with negligible attention to reform of state structures or product markets. Syriza’s main challenge is the residue of the scorched earth austerity policies of the previous 6-years. Reducing its GDP by 26%, and youth unemployment up to 62%. This position is described in a recent book entitled, ‘The Rape of Greece’, by Nadia Valavani, Syriza’s deputy finance minister. The EU-Troika forced a bankrupt country to take on additional credit packages, allowing foreign banks to effectively ‘dump’ their bonds onto Greek taxpayers, and trap the Greek population in sovereign debt slavery. As in Ireland, this process was expediently called a ‘rescue’ or ‘bailout’. Leaked IMF minutes for May 2010 stated that Troika loans to Greece, “may be seen not as a rescue of Greece, which will have to undergo a wrenching adjustment, but as a bailout of Greece’s private debt holders’. Syriza’s Manifesto, the Thessaloniki Programme demands cancellation of “the greater part” of Greece’s public debt. Understandably and justifiably it seeks a “European Debt Conference”, at which it would have plenty to say for itself. Mr Varoufakis recently told Paul Mason (Channel-4): “ you can’t have a monetary union that pretends it can survive by simply lending more money to debtor countries on condition that they must shrink their income”. This...
Learning from Icelandic Economics; Banking Crisis Management

Learning from Icelandic Economics; Banking Crisis Management

Having just returned from a trip to the Land of Ice & Fire, that is Iceland – a country that is finally lifting controls imposed during its Banking Crisis management in 2008, I couldn’t escape the aura of regeneration, honesty & freshness that revealed itself during my stay. Earlier this summer, Katrín Júlíusdóttir the Icelandic Finance Minister announced the end of capital controls –or limitations on what people there can do with their money– imposed after the 2008 crash. While other countries are still suffering from flat inflation and badly behaved, but contrite bankers eye-balling Tribunals’ Investigators, Minister Júlíusdóttir has announced a 39 per cent tax on investors looking to take their money overseas. This summer Iceland imposed the tax to prevent it haemorrhaging money as it loosens bank laws imposed six years ago, when Iceland made the shocking decision to let its banks go bust. Rather than maintaining the value of the Krona artificially, Iceland chose to accept inflation in a lesson to leading global nations on Icelandic Economics. This pushed prices higher at home but helped exports abroad – in contrast to many countries in the EU, which are now fighting deflation, or prices that keep decreasing year on year. Iceland also allowed bankers to be prosecuted as criminals – in contrast to the US and Europe, where banks were fined, but chief executives escaped punishment. The chief executive, chairman, Luxembourg ceo., and second largest shareholder of Kaupthing, an Icelandic bank that collapsed, were sentenced in February to between four and five years in prison for market manipulation and economic fraud. “Why should we have a part...

PermTSB Tracker Redress Scheme – Desperate Measures on Tracker Mortgages Scandal

  Because of a series of Bad Calls made over the previous 15-years, in a Tsunami of reckless lending activities the exposures to Bank balance sheets became such that the majority of Tracker Mortgages were a major source of recurring business losses. This has been particularly true of Permanent TSB., and its enforced commencement of its Tracker Mortgage Redress Scheme. To counter-balance this, the Banks [collectively and individually] evolved a Customer Handling Strategy whereby affected Borrowers were cajoled, by-hook-or-by-crook to forfeit their rights as Tracker Mortgage Borrowers. As a direct consequence of being very deliberately inveigled into moving-off Trackers, without being appraised of their Rights as Consumers at the time, Borrowers (to date, and into the future) have been charged very substantial volumes of mortgage interest. Indeed it has been demonstrated that in the case of Permanent TSB., more than 22-affected Home Owners actually had to under a forced-sale of their Private Residences. Scale of Tracker Scandal in PermTSB Tracker Redress: Recent media estimates indicate that what is now legitimately referred to as the Tracker Scandal is expected to cost PermTSB Tracker Redress, alone at least €35m in reimbursements to customers together with an additional €20m in Central Bank fines. Such mortgages are a carry-over from the pre-2008 Banking boom  when Irish banks could borrow virtually unlimited amounts from mainland European banks at or close to official ECB rates (see Previous Blog on Government & Banks acted in consort to fuel reckless lending). Those days are long gone, and Irish Banks have been caught ‘with-their-trousers-down’ but the tracker contracts remain in force, with the recently-released Central Bank statistics showing...

forensic assessment of bank documents

Borrowers may have compelling reasons for a forensic assessment of bank documents. Disclosures can assist in defending themselves, their families and their Assets against Bank actions. Or perhaps challenging the historical lending activities &  of their banks in terms of Banks’ conduct in applying their own lending & securities policies. Asset tracing undertakings in family law cases can also necessitate such investigations. In certain cases fundamental irregularities may exist in  bank documents to such an extent that (if disclosed) these may either severely curtail, or even prevent the recovery activities of Banks & their legal teams. A starting point, prior to forensic assessment of bank documents  may be to obtain preliminary legal advice to ascertain if there is likely to be a positive Cost Benefit Analysis outcome. Then a potential Phase-1 action might be for the Borrower to present to their Lender, a Request for Disclosure Letter under Section 4 of the Data Protection Acts 1988 and 2003. This letter can compel the Bank to produce file copies of all lending  securities documents, within 40-days of receipt of such a letter. There may be key items contained in the disclosed bank lending & securities documentation. After  a Forensic Assessment by an independent Investigator (with appropriate experience in Banking Practices, and Institute of Bankers membership) – these may flag further action leading to a more structured bank forensic investigation. This in turn may assist in the achievement of a balanced & all encompassing negotiated full and final debt...

LIBOR rigging, Deutsche Bank, High Frequency Trading, the Race to Zero

Germany’s Deutsche Bank has been fined a record $2.5bn (£1.7bn) for rigging Libor, ordered to fire seven employees and accused of being obstructive towards regulators in their investigations into the global manipulation of the benchmark rate. The penalties on Germany’s largest bank also involve a guilty plea to the Department of Justice (DoJ) in the US and a deferred prosecution agreement. The regulators released a cache of emails, electronic messages and phone calls showing the attempts to move the rate used to price £3.5tn of financial contracts (meaning Loan Agreements for individuals and corporates globally). Deutsche Bank is a multinational business whose Net Worth is  larger than the shrinking Greek economy. However look at the ‘calling to account’ of the Greeks versus the $2.5BN fine on Deutsche & then business-as-usual afterwards. This substantial fine is financed from Deutsche’s illegally generated revenues. Yanis Varoufakis @yanisvaroufakis FDR, 1936: “They are unanimous in their hate for me; and I welcome their hatred.” A quotation close to my heart (& reality) these days 10:49 AM – 26 Apr 2015 The Guardian reported Navinder Singh Sarao, the British financial trader accused of making $40m (£27m) by manipulating US stockmarkets and in the process contributing to the 2010 “flash crash”, invested £2m of his profits in a company linked to a former court of appeal judge, a City grandee, a pair of private equity tycoons and a media entrepreneur. The fresh details of how Navinder Singh Sarao’s trading profits appear to have filtered into more mainstream parts of the City have emerged after a week in which the previously obscure trader was propelled on to...