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Eu Inquiry Into Claims Of Banks' Collusion In Credit Derivatives Market

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http://www.guardian.co.uk/business/2011/apr/29/banking-credit-default-swaps-eu-investigation

The European Union is investigating HSBC, Royal Bank of Scotland and Barclays among 16 of the world's leading investment banks over suspicions they colluded and abused their positions in providing the financial derivatives many blame for exacerbating the eurozone sovereign debt crisis.

The inquiry into credit default swaps (CDS), the controversial financial contracts designed to allow investors to insure against debt default, follows accusations that banks, many of them rescued by their host governments from collapse, played a part in forcing Greece and Ireland to seek EU bailout funds.

If found guilty of abusing their position, the banks could be fined up to 10% of revenues by the European commission, which has handed out sanctions as big as €1bn (£880m).

Joaquín Almunia, the commissioner in charge of anti-trust cases, said: "Recent developments have shown that the trading of this asset class suffers a number of inefficiencies that cannot be solved through regulation alone. We are therefore opening two new cases to improve market transparency and fairness in the CDS market ... Lack of transparency in markets can lead to abusive behaviour and facilitate violations of competition rules and the commission should react accordingly."

Looks like the politicians are starting to move against the bankers and blame them for this mess, whilst no doubt excusing themselves of any blame.

This I fear has nothing to do with market transparency its about securing more revenue for the EU. When politicians want cash the banks will find they have no where to hide.

Although it is ironic that those nations who had to rescue their banks ended up needing a bailout themselves because they didn't have the money.

Luckily the UK hasn't got this issue...

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Thanks for posting this.

Confirms my suspicions about the role played by British banks and more importantly the City of London.

I stand by my comments that the people who run out financial institutions are lying filth. The next step will be for the EU to investigate the role taken by the Major US investment banks which should be banned from trade with the EU and Asia.

http://www.guardian....u-investigation

Looks like the politicians are starting to move against the bankers and blame them for this mess, whilst no doubt excusing themselves of any blame.

This I fear has nothing to do with market transparency its about securing more revenue for the EU. When politicians want cash the banks will find they have no where to hide.

Although it is ironic that those nations who had to rescue their banks ended up needing a bailout themselves because they didn't have the money.

Luckily the UK hasn't got this issue...

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yeah well, it's all fine so long as TPTB can keep their nerve, I don't think any of them are man enough though, once it starts to become apparent that the fudge isn't working they'll be back stabbing as hard and fast as they can, that goes for the coalition as well.

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There is something horribly circler here- how can we fine the banks we bailed out and continue to bail out by the back door via ZIRP and whatever other schemes are currently in play? Aren't we just engaging in a form financial masterbation here?

It's not the 'banks' that need to be hit, its the 'bankers'- the real people who continue to make hay whatever the weather. When the PTB go after the personal wealth of those involved in this theft then we might finally see change.

Until then the bankers will happily pay their fines and come back a week later for another bailout.

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Thanks for posting this.

Confirms my suspicions about the role played by British banks and more importantly the City of London.

I stand by my comments that the people who run out financial institutions are lying filth. The next step will be for the EU to investigate the role taken by the Major US investment banks which should be banned from trade with the EU and Asia.

I'm not happy until we have the majority of senior bankers corpses suspended in gibbets over the Thames - time to get medieval on them.

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I can't remember where I read about this but I gathered there was absolutely no hint of questioning the actual nature of a CDS, merely uncompetitive collusion in the clearing house and price dissemination (gee, wow, what a revelation there.. sigh). I was really hopeful when I read the headline but think they're going to completely ignore the elephant in the room.

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Aren't we all aware of the multi trillion, perhaps quadrillion, derivative market on here?

This is not news.

A financial derivative is nothing more than this: y=x

with x being your money applied to whatever function you can think of. It is just a plain old mathematical function, with no inherit value other than the faith of a lot of very inept people.

How we got to this point is beyond me, but a lot of really corrupt people need to meet the hangman before we see any progress as a world society.

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I can't remember where I read about this but I gathered there was absolutely no hint of questioning the actual nature of a CDS, merely uncompetitive collusion in the clearing house and price dissemination (gee, wow, what a revelation there.. sigh). I was really hopeful when I read the headline but think they're going to completely ignore the elephant in the room.

Of course they are going to ignore the elephant in the room, if they admit what the elephant is just think what will happen to GDP that all market rigging has helped to boost.

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http://www.guardian....u-investigation

The European Union is investigating HSBC, Royal Bank of Scotland and Barclays among 16 of the world's leading investment banks over suspicions they colluded and abused their positions in providing the financial derivatives many blame for exacerbating the eurozone sovereign debt crisis.

The inquiry into credit default swaps (CDS), the controversial financial contracts designed to allow investors to insure against debt default, follows accusations that banks, many of them rescued by their host governments from collapse, played a part in forcing Greece and Ireland to seek EU bailout funds.

If found guilty of abusing their position, the banks could be fined up to 10% of revenues by the European commission, which has handed out sanctions as big as €1bn (£880m).

Joaquín Almunia, the commissioner in charge of anti-trust cases, said: "Recent developments have shown that the trading of this asset class suffers a number of inefficiencies that cannot be solved through regulation alone. We are therefore opening two new cases to improve market transparency and fairness in the CDS market ... Lack of transparency in markets can lead to abusive behaviour and facilitate violations of competition rules and the commission should react accordingly."

What I want to know is what happens to these fines? You never hear about who is accountable for redistribution of them or where they finally end being spent.

Billions in fines in this country and Europe for cheating/fraudulant big business carrying out frauds against UK/Euro populations - yet the cash for these fines just vanishes!

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What I want to know is what happens to these fines? You never hear about who is accountable for redistribution of them or where they finally end being spent.

Billions in fines in this country and Europe for cheating/fraudulant big business carrying out frauds against UK/Euro populations - yet the cash for these fines just vanishes!

You are correct in that there is no "justice" to be had by fining a "corporation"! The customers will just get charged more!

Until you punish the people in charge there can be no "justice"!

Might as well punish an animal like in Mediaeval times! :o:huh:

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You are correct in that there is no "justice" to be had by fining a "corporation"! The customers will just get charged more!

Until you punish the people in charge there can be no "justice"!

This is the basic flaw in the idea of treating corporations like persons- a corporation feels no pain, so how do you sanction it?

The Bankers are very keen on the idea of personal liability when it comes to people paying back loans- but when it comes to some kind of link between their own bad decisions and the impact on their personal wealth this enthusiasm for personal liability seems less in evidence.

They hide then behind their corporate ramparts and threaten to bring the whole edifice down on anyone who tries to make them responsible for their actions.

The only real difference I an see between a Banker and a Gangster is that gangsters have to bribe those who enforce the law, while Bankers need only bribe those who legislate it. Two parasites, just occupying different positions in the food chain.

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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