Posts Tagged ‘Banking’

Interviewed by The Independent on Sunday, Mr Saviano said of the international drugs trade that “Mexico is its heart and London is its head”. He said the cheapness and the ease of laundering dirty money through UK-based banks gave London a key role in drugs trade. “Antonio Maria Costa of the UN Office on Drugs and Crime found that drug trafficking organizations were blatantly recycling dirty money through European and American banks, but no one takes any notice,” he said. “He found that banks were welcoming dirty money because they need cash, liquidity during the financial crisis. The figures are too big to be rejected …. Yet there was no reaction.”

US justice officials concluded HSBC was guilty of “stunning failures of oversight – and worse, that led the bank to permit narcotics traffickers and others to launder hundreds of millions of dollars through HSBC subsidiaries and facilitate hundreds of millions more in transactions with sanctioned countries”, including money banked for Middle East terror groups.

He accused the British Government, together with Austria, of consistently blocking anti-money-laundering moves by the European Union. “They will carry on like that until someone gets killed here by the Russians or the Italians. ” he said. Mr Saviano said he feared one reason was because banks are a key source of political funding.

“Every time there’s an election campaign, I wonder if someone will come forward and start a campaign on money laundering … but it never happens. The reason, I am convinced but I don’t have the proof, is that a good part of the money that comes from money laundering goes into the election campaign. Not illegally, legally, because it can come in because of a lack of regulation.”

Full Story @ []

So, the question then is: just what is Citigroup doing with its soaring Precious Metals (excluding gold) exposure, and why is such a dramatic place taking place at precisely the time when not only JPM is cornering the entire “Other” Commodity derivatives market in the form of a whopping $4 trillion in derivatives notional, but in the quarter after none other than Citigroup itself was responsible for drafting the swaps push-out language in the Omnibus bill.

And also: how is it legal that JPM is solely accountable for 96% of all commodity derivatives while Citigroup is singlehandedly responsible for over 70% of all “precious metals” derivatives? Surely even by the most lax standards this is illegal, but what makes the farce even greater is that all of this taking place out of FDIC-insured entities!

The final question, which we are absolutely certain will remain unanswered, is whether any of these dramatic surges have anything to do with the recent move in precious metals prices, or rather the complete lack thereof, even as Europe is on the verge of its first member officially exiting the Eurozone, and China’s stock market is suffering its worst market crash since 2008. Oh, and we almost forgot: with both JPM and Citi now [own] well over 50% of the derivatives market in two critical categories, who is the counterparty!?

Full Story @ [Zero Hedge]


teleSUR spoke with UK anti-poverty activist John Hilary, who criticized the behavior of Greece’s creditors who have demanded more austerity.

The International Monetary Fund made over US$1.5 billion as a result of the interest charged to Greece through its bailout loans, according to John Hilary, executive director of the War on Want, who spoke to teleSUR in an exclusive interview Tuesday.

The leftist Syriza government led by Prime Minister Alexis Tsipras will conduct a referendum Sunday to consult with the Greek people and determine whether they approve or reject the terms set out by creditors, which include tax increases and cuts to pensions.

Tsipras opted to call for the referendum after negotiations broke down between the government and its creditors, who insisted on more of the same policies that have pushed the Greek economy into a severe economic recession.

“The only people who are benefiting from keeping the debt going are the bankers, they’re the ones who made a killing out of Greece’s debt,” Hilary told teleSUR. “Of the money that has been handed out in the so-called bailouts, 10 percent has gone into the Greek economy and 90 percent has gone straight back to the bankers and the other financiers who are holding that credit,” said Hilary.

Source: [TeleSur]

Treasury Secretary Jacob Lew (center) speaks with (from left) Sen. Ben Cardin, D-Md., Ellicott Dredges GM Craig Murdock and CFO Joseph Wendel during a tour of the company’s manufacturing facility in March. Lew was on hand to promote investment in American infrastructure. The company has utilized the Export-Import Bank’s services.

An agency of the federal government will have to stop doing business today. That’s because members of Congress went home last week for the July Fourth recess without reauthorizing the Export-Import Bank.

The bank helps American companies sell their goods overseas. The bank’s critics say they’re stopping corporate welfare.

Back in May of this year Boeing threatened to outsource jobs if ex-im bank is shut down.

Source: [NPR]

U.S. stocks fell nearly 2 percent or more on Monday, following a decline in global markets on the escalating Greece debt crisis.


Dow down -350.33 over 5 days.

“I think the uncertainty around Greece is just making people skittish and we haven’t had a meaningful pullback for some time,” said Ben Pace, chief investment officer at HPM Partners. “It’s hard for anybody to fight this uncertainty.”

“It should be a reasonably isolated situation but we don’t know that for sure,” he said.

Stocks extended losses in late-afternoon trade as Greece Prime Minister Alexis Tsipras said the stronger the rejection of the creditor deal, the stronger the Greek hand in the talks. He added that the aim for the referendum is to bring continuation of negotiations with lenders.

S&P downgraded Greece to “CCC-” and said in a Reuters report that the probability of the country exiting the euro zone is now about 50 percent. Earlier, a Greek official told Reuters in midday trade ET that the country will not pay its loan due to the International Monetary Fund on Tuesday.

Full Story @ [Yahoo News]

The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned.

The so-called central bank of central banks launched a scatching critique of global monetary policy in its annual report. The BIS claimed that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies.

These low interest rates have in turn fuelled economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates.

The BIS said that the current turmoil in Greece typified the kind of “toxic mix” of private and public debt being used as a solution to economic problems, rather than making the proper commitment “to badly needed” structural reforms.

Full Story @ [The Telegraph]

Greece Announces Bank Holiday

Posted: June 28, 2015 in Economics
Tags: ,

As Greece inches closer to a financial default, the government closes banks and initiates capital controls. Sean Carberry reports.