A Dark Alliance: European Union Joins Forces With Wall Street! TTIP Basis for Fascist New World Order, World Government!

- A Dark Alliance: European Union Joins Forces With Wall Street!
by Don Quijones • July 7, 2014, http://wolfstreet.com/
Unbeknownst to the vast majority of Europeans and Americans, late-stage negotiations are under way to significantly water down all forms of financial regulation on both sides of the Atlantic. This is part of the Transatlantic Trade and Investment Treaty (TTIP) being negotiated behind closed doors.
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However, contrary to popular wisdom, it’s not the U.S. government that is leading the charge, but rather an unholy alliance between the European Commission, Wall Street, and the City of London. According to Corporate Europe Observatory, one of the few organizations to report the latest TTIP leak, to understand these new developments, one must first bear in mind the political and regulatory context, both in Europe and the U.S:
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The EU is on the brink of concluding its reform agenda in the aftermath of the financial crisis of 2008 with a set of rules that are weaker than those of the US in key areas such as banking regulation. That has already been the source of friction between the two blocs.
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The most famous example is probably the attempt of Deutsche Bank’s subsidiary in the U.S. to come under U.S. rules on capital reserves (which require companies to keep aside a proportion of capital available to avoid risk of collapse or bailout)… Considering that Deutsche Bank was one of the largest recipients of bailout money from the U.S. authorities in the aftermath of the collapse of Lehman Brothers and the insurance giant AIG, a demand that it abides by U.S. rules on capital requirements seems entirely legitimate. But this is resented by the European Commission and financial corporations, as are other rules to which EU banks in the U.S. are subject.
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The main reason why the European Commission is loath for European banks like Deutsche to have to operate under new U.S. rules is that they are woefully under-capitalized compared to U.S. banks, which themselves are worryingly under-capitalized. It is no coincidence that the central bankers’ central bank, the Bank of International Settlements, decided at the beginning of this year to “ease” leverage ratio rules that would have forced European banks to hold capital equivalent to 3 percent (that’s right: three measly percent!) of its total assets.
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A Twisted Alliance
In its attempt to twist the U.S. government’s arm on banking regulations, the Commission is bowing to pressure, both from domestic European banks and their “competitors” (ha!) on the other side of the pond. Too-big-to-fail banks in the U.S. and Europe would like nothing better than to torpedo the U.S. government’s latest efforts to more effectively regulate the sector.
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The regulatory black hole commonly known as the City of London also seems to be playing a front-line role in negotiations. Richard Normington, senior manager of the Policy and Public Affairs team at the TheCityUK, a powerful British lobby group, had unreservedly promoted the Commission’s approach. He recently boasted that one of the Commission’s policy proposals, “reflected so closely the approach of TheCityUK that a bystander would have thought that it came straight out of our brochure on TTIP”.
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Reblogged this on Spartan of Truth.