How to ensure that there are no panic situations with investment banks and multinational ones like HSBC
HSBC is a multinational bank with a registered HQ in one country but divisions based in other countries and legal jurisdictrions and tax locations like many others. Since the G20 banks such as these are required to hold more cash reserves and investments and lend slightly less and not mortgages at above a certain amount of a persons income.
An example of a bank which didn't do that is Northern Rock wihich didn't do that with 125% mortgages and paid the consequences needing state bailout debt restructuring and loss adjustment (allowing its customers to default with debt advice and support) so that now its shares can be sold off again on the UK states stock exchange should the government be so minded.
However Northern Rock was a mainly one jurisdiction bank and not a multinational one like JP Morgan, Barclays or HSBC. What happens now for banks such as these affected by the East Africa droughts or Australasian Earthquakes, how does the international community ensure that aid and reconstruction continues and is stabilised.
While The previous UK governments tripartite regulation system failed to prevent the last recession it did mitifgate it unlike previous ones where credit spivs and doorsteo lenders exacerbated the microeconomic pain within a jurisdiction. that is because the FSa amalgamated self created and self regulated bodies which were accountable to parliament and the treasury but could not be coordinated under the economic regulations of the day. The FSA is funded by a percentage of share dividends and profits from all those who it regulates so if the World Bank could have a similar body within and offerring full disclosure to it of the danger zones without delay as occurred in the UK prior to Northern Rocks collapse (which created ongoing lending and the long boom 1992-2007). Then it could liase with the UN and teh G20 to produce combined sovereign debt restructuring, longer repayment periods for those that can (such as Sundays compromise for the USA and states of similar economic size such as Russia, India and China) and write off for those that can't (such as agreed at Gleneagles by the G8 in 2005 and followed through with with the G20 in London prior to the last general election) and find ways of reducing teh risks to the investment banks and those who are really 'casinos' to quote the Business secretary Vince Cable by restructuring repayments in a similar way that the futures market did after the Oil leak in the Gulf of Mexico. This is especially important if there are more earthquakes or reductions in states GDPs owing to unpredictable transport delays between states (such as Volcanic ash clouds and aviation) as
If that is done then corporations who have the investments of places such as Middle America and Metroland and Germany would be as protected as hard working families who have invested in them are being done now with the speration of retail and investment banking that is already underway. Then the Euro could be sustained with perhaps a period with Greece having its own currency if needed which in turn could allow the pound sterling to survive and sustain the economy peacefully. This is important so that the UK constitution is reformed such as the election of second chamber, codification of the constitution and the resolution of the West Lothian question with an English Parliament and regional cttes based on regional stv voting system for England within the Second Chamber. Within that context there is also the resolution of the status of Scotland following the democratic mandate the secessionist SNP achieved.
They could then in turn aid regional economic recovery in Northern England, Scotland and South Wales with better Transport links sustainably funded through Investment banks investing in Government bonds for projects such as rail both conventional and highspeed. The UK has several projects such as these in the development pool and one of these is Croxley Rail Link where the devolved transport authority for the neighbouring region and county has with it and district / borough / unitary council support and engineering advice by the Federal Rail agency (Network Rail) delivered a submission and public consultation. This one could be a case study for bond issues as the WEstminster MP for Watford has advocated the retention of the land that was to be sold off to fund it for overnight train storage (also post recession its land value may have gone down).
In short as the FTSE opens today there is no need to panic.
An example of a bank which didn't do that is Northern Rock wihich didn't do that with 125% mortgages and paid the consequences needing state bailout debt restructuring and loss adjustment (allowing its customers to default with debt advice and support) so that now its shares can be sold off again on the UK states stock exchange should the government be so minded.
However Northern Rock was a mainly one jurisdiction bank and not a multinational one like JP Morgan, Barclays or HSBC. What happens now for banks such as these affected by the East Africa droughts or Australasian Earthquakes, how does the international community ensure that aid and reconstruction continues and is stabilised.
While The previous UK governments tripartite regulation system failed to prevent the last recession it did mitifgate it unlike previous ones where credit spivs and doorsteo lenders exacerbated the microeconomic pain within a jurisdiction. that is because the FSa amalgamated self created and self regulated bodies which were accountable to parliament and the treasury but could not be coordinated under the economic regulations of the day. The FSA is funded by a percentage of share dividends and profits from all those who it regulates so if the World Bank could have a similar body within and offerring full disclosure to it of the danger zones without delay as occurred in the UK prior to Northern Rocks collapse (which created ongoing lending and the long boom 1992-2007). Then it could liase with the UN and teh G20 to produce combined sovereign debt restructuring, longer repayment periods for those that can (such as Sundays compromise for the USA and states of similar economic size such as Russia, India and China) and write off for those that can't (such as agreed at Gleneagles by the G8 in 2005 and followed through with with the G20 in London prior to the last general election) and find ways of reducing teh risks to the investment banks and those who are really 'casinos' to quote the Business secretary Vince Cable by restructuring repayments in a similar way that the futures market did after the Oil leak in the Gulf of Mexico. This is especially important if there are more earthquakes or reductions in states GDPs owing to unpredictable transport delays between states (such as Volcanic ash clouds and aviation) as
If that is done then corporations who have the investments of places such as Middle America and Metroland and Germany would be as protected as hard working families who have invested in them are being done now with the speration of retail and investment banking that is already underway. Then the Euro could be sustained with perhaps a period with Greece having its own currency if needed which in turn could allow the pound sterling to survive and sustain the economy peacefully. This is important so that the UK constitution is reformed such as the election of second chamber, codification of the constitution and the resolution of the West Lothian question with an English Parliament and regional cttes based on regional stv voting system for England within the Second Chamber. Within that context there is also the resolution of the status of Scotland following the democratic mandate the secessionist SNP achieved.
They could then in turn aid regional economic recovery in Northern England, Scotland and South Wales with better Transport links sustainably funded through Investment banks investing in Government bonds for projects such as rail both conventional and highspeed. The UK has several projects such as these in the development pool and one of these is Croxley Rail Link where the devolved transport authority for the neighbouring region and county has with it and district / borough / unitary council support and engineering advice by the Federal Rail agency (Network Rail) delivered a submission and public consultation. This one could be a case study for bond issues as the WEstminster MP for Watford has advocated the retention of the land that was to be sold off to fund it for overnight train storage (also post recession its land value may have gone down).
In short as the FTSE opens today there is no need to panic.
posted by James | 6:34 AM
1 Comments:
Ok that is personal analysis based on hearing that the DEC has launched an appeal. At present aid agencies such as this are organised at the nation state level and are dependent on a combination of government grants such as the UK currently pledging £90m, and further fundraising by their citizens.
However in the past UN aid operations have been restricted by the aid limitations of previous operations and some nations withholding funding for the UN in protest at resolutions against them (especially during the Cold War).
Since then The UN has ammended and refined teh IMF / World Bank relationship and financing for teh third sector aid areas, but not so much out of respect for national jurisdiction multinational and investment banks.
If reconstruction from earthquakes and redigging wells after droughts with assistance is to occur as quickly as possible, then some form of global coordination of these banks may be needed. Whether that requires UN support or resolution I do not know.
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