Category Archives: Big Banks

Flat CO2 Emissions Not Enough to Curb Climate Change, Experts Say

Shannon Hall reports for Live Science:

‘Global emissions of carbon dioxide — one of the leading causes of global warming — stalled in 2014, marking the first time in 40 years that there was no climb in CO2 emissions during a time of economic growth. The results suggest that efforts to reduce emissions may be on the upswing, but experts say the situation is not so simple.

In fact, some scientists say that the findings, announced last week by the International Energy Agency (IEA), represents only one data point and that the overall trend in carbon dioxide emissions is continuing upward.’

READ MORE…

Cassetteboy: Emperor’s New Clothes Rap

Big Bank’s Analyst Worries That Iran Deal Could Depress Weapons Sales

Lee Fang writes for The Intercept:

Featured photo - Big Bank’s Analyst Worries That Iran Deal Could Depress Weapons SalesCould a deal to normalize Western relations with Iran and set limits on Iran’s development of nuclear technology lead to a more peaceful and less-weaponized Middle East?

That’s what supporters of the Iran negotiations certainly hope to achieve. But the prospect of stability has at least one financial analyst concerned about its impact on one of the world’s biggest defense contractors.

The possibility of an Iran nuclear deal depressing weapons sales was raised by Myles Walton, an analyst from Germany’s Deutsche Bank, during a Lockheed earnings call this past January 27th. Walton asked Marillyn Hewson, the chief executive of Lockheed Martin, if an Iran agreement could “impede what you see as progress in foreign military sales.” Financial industry analysts such as Walton use earnings calls as an opportunity to ask publicly-traded corporations like Lockheed about issues that might harm profitability.’

READ MORE…

China-US Rivalry Front and Center of IMF Reform Debate

UK shift to China and AIIB “extremely worrying for Washington” – Interview with Liam Halligan

‘Liam Halligan, editor at large of Business New Europe and Telegraph columnist, talks to Going Underground host Afshin Rattansi about the Asian Infrastructure Investment Bank. He explains it is a rival to not only the IMF but also to the Asia Development Bank, which is Japanese-led. This is extremely threatening to the US as the BRIC countries wield a massive amount of power. There is a difference in the way that America and Britain see China, with the UK seeing them as a trading partner rather than a challenge. It is a symbolic move for Britain to back the AIIB, taking a step away from Washington towards a current that the US sees as a ‘major irritant.’ And he feels there is a growing argument that Britain’s future lies not in the West, with a failing Eurozone, but in a thriving Asian economy.’ (Going Underground)

The London Whale

Patricia Hurtado writes for Bloomberg View:

A recent history of JPMorgan's risk.The trader known as the London Whale lost at least $6.2 billion for JPMorgan Chase & Co. in 2012. That’s a lot of money until you remember that it didn’t stop the bank from earning a record profit of $21.3 billion the same year. The pain came elsewhere: Two former traders face criminal charges, the bank admitted violating securities laws and agreed to pay fines of more than $1 billion, a U.S. Senate subcommittee wrote a scathing report and the bank’s chief executive, Jamie Dimon, took a pay cut. The London Whale case drew a bigger reaction than other missteps by banks since the 2008 financial crisis, partly because of Dimon’s previous rock-star status. More importantly, it raised two worrisome questions: What if the banks are still addicted to risk? And what if regulators haven’t gotten better at spotting that?’

READ MORE…

‘You eat what you kill': Wall Street bonuses keep soaring as profits decline

Suzanne McGee reports for The Guardian:

‘With all the changes that have taken place on Wall Street since the financial crisis hit – the mergers, the new regulations and the lawsuits that continue to take a toll on banks’ bottom lines, not to mention the Federal Reserve’s demands that they continue to prove their health via regular “stress tests” – one thing remains unaltered.

It’s the ritual of the annual bonus check handed out to those lucky folks who have survived the job cuts and who continue to endure the Hobbesian life – nasty, brutish and short – on trading desks and in investment banking groups across Wall Street.

Given the banking industry’s reputation for ruthlessness and its emphasis on the “buyer beware” philosophy, you might expect a difficult environment to be reflected in the size of those bonuses.

Well, not so fast. This is Wall Street, after all.’

READ MORE…

World Bank Admits It Ignored Its Own Rules Designed To Protect The Poor

Ben Hallman, Sasha Chavkin and Mike Hudson report for the Huffington Post and the International Consortium of Investigative Journalists:

The World Bank, created to fight poverty, has admitted that it’s failed to follow its own rules for protecting the poor people swept aside by dams, roads and other big projects it bankrolls.

This conclusion, announced by the bank on Wednesday, amounts to a reversal of its previous efforts to downplay concerns raised by human rights activists and others working on behalf of the dispossessed — people evicted from their land, sometimes in violent ways, to make way for World Bank-financed initiatives.

It comes days after the International Consortium of Investigative Journalists and The Huffington Post informed bank officials that the news outlets had found “systemic gaps” in the bank’s protections for people who lose homes or jobs because of development projects.’

READ MORE…

How Reaganomics Changed Corporations

Thom Hartmann comments on a Roosevelt Institute report that corporations today don’t stimulate investment, growth, and wages because, additional funds are funneled to shareholders through buybacks and dividends.’ (The Thom Hartmann Program)

All our mainstream media is tied into corporate interests: Interview with Nafeez Ahmed

Nafeez Ahmed, former Guardian contributor and currently crowdfunding Insurge, a new media platform, talks to Going Underground host Afshin Rattansi about the paper.’ (Going Underground)

Death, Drugs, and HSBC: How fraudulent blood money makes the world go round

Nafeez Ahmed writes for Medium:

‘Recent reporting on illegal tax evasion by the world’s second largest bank, HSBC, opens a window onto the pivotal role of Western banks in facilitating organised crime, drug-trafficking and Islamist terrorism. Governments know this, but they are powerless to act, not just because they’ve been bought by the banks: but because criminal and terror financing is integral to global capitalism. Now one whistleblower who uncovered an estimated billion pounds worth of HSBC fraud in Britain, suppressed by the British media, is preparing a prosecution that could blow wide open the true scale of criminal corruption in the world’s finance capital.’

READ MORE…

The Bleak Science Bankrolled by the Pentagon

Nafeez Ahmed writes for VICE Motherboard:

Minerva Research InitiativeThe ​US military is increasingly concerned about the risk of social, political, and economic collapse due to resource stress and climate change. The Pentagon’s ​latest call for research throws light on where and how the military suspects that resource stress could fuel political grievances on a mass scale.

The call, whose deadline to receive proposals is today [Feb 19th], comes on behalf of the US Department of Defense (DoD) ‘Minerva Research Initiative,’ a multimillion dollar social science program. Minerva is designed so the Pentagon can draw on leading-edge academic expertise outside the military, on issues where it lacks sufficient internal knowledge on specific subjects or regions. By examining its areas of focus, we’re offered a rare glimpse into where and how the Pentagon fears conflict will grip the world in the future.’

READ MORE…

Global Challenges: 12 Risks That Threaten Human Civilisation

The Global Challenges Foundation just issued a report on ’12 risks that threaten human civilisation':

12riskThis report has, to the best of the authors’ knowledge, created the first list of global risks with impacts that for all practical purposes can be called infinite. It is also the first structured overview of key events related to such risks and has tried to provide initial rough quantifications for the probabilities of these impacts.

With such a focus it may surprise some readers to find that the report’s essential aim is to inspire action and dialogue as well as an increased use of the methodologies used for risk assessment.

The real focus is not on the almost unimaginable impacts of the risks the report outlines. Its fundamental purpose is to encourage global collaboration and to use this new category of risk as a driver for innovation.

The idea that we face a number of global risks threatening the very basis of our civilisation at the beginning of the 21st century is well accepted in the scientific community, and is studied at a number of leading universities. But there is still no coordinated approach to address this group of risks and turn them into opportunities.’

READ THE FULL REPORT…

Why I resigned from the Telegraph: Interview with Peter Oborne

IMF: Ukraine to get $40 billion bailout

DW reports:

The International Monetary Fund (IMF) and embattled Ukraine have reached an initial deal on a new financial rescue package worth $17.5 billion, a potential “turning point” for Kyiv, IMF chief Christine Lagarde confirmed on Thursday.

The IMF’s contribution is part of a total of $40 billion Ukraine is set to receive from the international community.

Talks on the country’s fourth bailout in 10 years had been underway in the Ukrainian capital for days after the last aid program from April 2014 failed to stabilize Ukraine’s finances as it battles pro-Russian separatists in the east.’

READ MORE…

West Coast Port Dispute Threatens U.S. Economy

Somalia: The careless, astonishing cruelty of Barack Obama’s government

George Monbiot writes for The Guardian:

Illustration by Sebastien ThibaultLet me introduce you to the world’s most powerful terrorist recruiting sergeant: a US federal agency called the office of the comptroller of the currency. Its decision to cause a humanitarian catastrophe in one of the poorest, most troubled places on Earth could resonate around the world for decades.

Last Friday, after the OCC had sent it a cease-and-desist order, the last bank in the United States still processing money transfers to Somalia closed its service. The agency, which reports to the US treasury, reasoned that some of this money might find its way into the hands of the Somali terrorist group al-Shabaab. It’s true that some of it might, just as some resources in any nation will find their way into the hands of criminals (ask HSBC). So why don’t we shut down the phone networks to hamper terrorism? Why don’t we ban agriculture in case fertiliser is used to make explosives? Why don’t we stop all the clocks to prevent armed gangs from planning their next atrocity?’

READ MORE…

Greece: The True Face of Golden Dawn

Editor’s Note: This report by Channel 4 News was first published in March 2013. 

Banking Giant HSBC Sheltered Murky Cash Linked to Dictators and Arms Dealers

The International Consortium of Investigative Journalists reports:

Swiss Leaks‘Secret documents reveal that global banking giant HSBC profited from doing business with arms dealers who channeled mortar bombs to child soldiers in Africa, bag men for Third World dictators, traffickers in blood diamonds and other international outlaws.

The leaked files, based on the inner workings of HSBC’s Swiss private banking arm, relate to accounts holding more than $100 billion. They provide a rare glimpse inside the super-secret Swiss banking system — one the public has never seen before.

The documents, obtained by the International Consortium of Investigative Journalists via the French newspaper Le Monde, show the bank’s dealings with clients engaged in a spectrum of illegal behavior, especially in hiding hundreds of millions of dollars from tax authorities. They also show private records of famed soccer and tennis players, cyclists, rock stars, Hollywood actors, royalty, politicians, corporate executives and old-wealth families.

These disclosures shine a light on the intersection of international crime and legitimate business, and they dramatically expand what’s known about potentially illegal or unethical behavior in recent years at HSBC, one of the world’s largest banks.’

READ MORE…

HSBC files show bank helped clients dodge millions in tax

Global debt has grown by $57 trillion in seven years following the financial crisis

Ami Sedghi reports for The Guardian:

Global stockGlobal debt has grown by $57 trillion to reach $199 trillion in the seven years following the financial crisis – a 40.1% rise, according to a new report. All major economies are now recording higher levels of borrowing relative to gross domestic product (GDP) than they did in 2007.

Total debt as a share of GDP stood at 286% in the second quarter of 2014 compared with 269% in the fourth quarter of 2007.

The McKinsey and Global Institute study which analyses the evolution of debt in 47 countries, found that government debt is “unsustainably high” in some of those, with government debt growing by $25 trillion since 2007. The study found that in 10 of the countries studied, it exceeds 100% of GDP.’

READ MORE…

Former IMF Chief Dominique Strauss-Kahn To Face Trial On Pimping Charges

Spanish Anti-Austerity Party Rally Draws Tens Of Thousands

Greece shows what can happen when the young revolt against corrupt elites

Paul Mason writes for The Guardian:

‘[…] The fact that a party with a “central committee” even got close to power has nothing to do with a sudden swing to Marxism in the Greek psyche. It is, instead, testimony to three things: the strategic crisis of the eurozone, the determination of the Greek elite to cling to systemic corruption, and a new way of thinking among the young.

Of these, the eurozone’s crisis is easiest to understand – because its consequences can be read so easily in the macroeconomic figures. The IMF predicted Greece would grow as the result of its aid package in 2010. Instead, the economy has shrunk by 25%. Wages are down by the same amount. Youth unemployment stands at 60% – and that is among those who are still in the country.’

READ MORE…

Greece’s New Finance Minister: “We Are Going To Destroy The Greek Oligarchy System”

Zero Hedge reports:

Over two years ago, we first highlighted Yanis Varoufakis’ perspectives on the destruction of Greece and Europe’s bogus growth pacts. Since then he has grown in both reason and popularity as his no-nonsense discussons of the mis-design of the euro (and potential solutions) have made him the front-runner to be Syriza’s new finance minister. Never one to  mince words or play politics, Varoufakis tells Channel 4’s Paul Mason in this brief (but chilling for Brussels) interview, what his party would do if it gets into government in Greece, and admits the prospect of power in Europe is “scary”. As he sums up, “we are going to destroy the Greek oligarchy system,” and with it, we suspect, much of the narrative that holds the fragile European Union together…’

READ MORE…

The SYRIZA Challenge in Greece: Interview with Leo Panitch

Editor’s Note: Professor Leo Panitch is a distinguished research professor of Political Science at York University in Toronto, Canada and editor of the Socialist Register. He is also co-author of ‘The Making of Global Capitalism: The Political Economy of American Empire‘. The interview was recorded earlier last week, before the elections in Greece.

As inequality soars, the nervous super rich are already planning their escapes

Alec Hogg reports for The Guardian:

Private jet landing in the AlpsWith growing inequality and the civil unrest from Ferguson and the Occupy protests fresh in people’s mind, the world’s super rich are already preparing for the consequences. At a packed session in Davos, former hedge fund director Robert Johnson revealed that worried hedge fund managers were already planning their escapes. “I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway,” he said.

Johnson, who heads the Institute of New Economic Thinking and was previously managing director at Soros, said societies can tolerate income inequality if the income floor is high enough. But with an existing system encouraging chief executives to take decisions solely on their profitability, even in the richest countries inequality is increasing.”‘

READ MORE…

Our ‘impartial’ broadcasters have become mouthpieces of the elite

George Monbiot writes for The Guardian:

‘When people say they have no politics, it means that their politics aligns with the status quo. None of us are unbiased, none removed from the question of power. We are social creatures who absorb the outlook and opinions of those with whom we associate, and unconciously echo them. Objectivity is impossible.

The illusion of neutrality is one of the reasons for the rotten state of journalism, as those who might have been expected to hold power to account drift thoughtlessly into its arms. But until I came across the scandal currently erupting in Canada, I hadn’t understood just how quickly standards are falling.’

READ MORE…

Who are the Davos Class? (Infographic)

Bilderberg and the Cult of Austerity

Andrew Gavin Marshall writes in the sixth part in his series on Bilderberg:

AusterityLeedsTxistockphotoE3x4-1‘It could almost be a slogan: Bilderberg brings people together. Specifically, every year, the Bilderberg Group holds secret, “private” meetings at four star hotels around the world, bringing together nearly 150 of the world’s most influential bankers, corporate executives, dynasties, heads-of-state, foreign policy strategists, central bankers and finance ministers. It also invites the heads of international organizations, think tanks, foundations, universities, military and intelligence officials, media barons, journalists and academics.

Participants at Bilderberg appreciate having a closed-door forum where they can speak openly and directly to one other – and of course, not to us. But perhaps we, the people, would also like to hear what they have to say. For the past four years, Bilderbergers have been running around the world preaching the gospel of “austerity” and “structural reform” – very important terms. If you don’t know what they mean, Bilderbergers are working their day jobs to make sure you will learn.’

READ MORE…