Death Star Economics



Banking scandals update

It’s summer, it’s warm for once, the Olympics are inescapable… well, it shows in the news.

Citi’s Chief Economist Willem Buiter said on CNBC that the chance of a Greek exit from the eurozone was now at 90%. Now we’re talking. Prior to this, Citigroup’s former chairman Sandy Weill called for the separation of investment and retail banking divisions, which had been regulated in the US by the Glass-Steagall Act until its repeal upon the formation of Citigroup in 1998. Hang on a minute what? Yes, exactly. Lagged cognitive dissonance, says I.

In response to the drug trafficking/terrorism financing scandal, HSBC was fined $27.5m by Mexico for poor money laundering controls, i.e. for not putting enough effort in[to the money laundering].

Meanwhile in Japan, Nomura’s CEO Kenichi Watanabe and COO Takumi Shibata resigned, following the insider trading scandal that broke early this month, with the former being replaced by CIO Koji Nagai. According to Reuters, this is the third insider trading scandal that has hit the bank since now ex-CEO headed up the bank.

And in terms of LiborLloyds TSB is the next bank subpoenaed over the rate fixing affair. I think that’s all with regard to this topic. Thank god.

Mario Draghi held a press conference this morning, claiming that the ECB will do everything in its power to save the euro [once again], despite the “short term challenges” around. Positive scanning or moronic tendencies, we will just never know, will we?

With the Olympics kicking off all over London, the number of articles discussing the games has exploded. You get the economics of the Olympics, the lost importance of Britain vs London’s ego, the security threat the city will have to deal with and of course how the public transport system will undeniably break down. read article

And then there was that thing with the North Korean flag of course… read article

So long.

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2 Responses

  1. […] the above statement, changes of direction due to new management are likely. Plus, all this is following Sandy Weill’s (ex-chairman) comment regarding the necessary separation of investment and retail banking, which had led to the initial […]

  2. […] the creation of the Glass-Steagall act, making the merging of different banking operations possible.Sandy Weill, formerly Citi’s chairman, called for a repeal of the legislation in July, fueling debates about the bank’s future. Here’s some more […]

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