Skip to main content

ECB's lobby system with the “emperor” at the top

In November this year, the European Central Bank begins supervising the biggest banks in the European Union. From now on, the main responsibility for detecting risky banking, or banks that are outright failing, rests with that institution. Preparation has been ongoing since the so-called Single Supervisory Mechanism [SSM] was adopted by the Council and the European Parliament in the autumn of 2013. Rules on ethics were part of the considerations leading up to the approval, but it seems the ECB was not concerned with people with close ties to the very megabanks the SSM is supposed to supervise.

The European Central Bank gets considerable powers* with the SSM. It can approve, reject, or annul a licence for a bank; it can order restructuring, impose a new leadership, and it can order capitalization in case a bank appears to be too vulnerable. All this to make the European banking sector more resilient. The draft decisions are made by the Supervisory Board and presented to the Governing Council of the ECB for a final decision. But should a bank want to object to the report of the Supervisory Board, it can file a complaint to the Administrative Board of Review, a panel of only five persons.”

Over the past years, Corporate Europe Observatory has highlighted several cases where the ECB has shown to be very close to big banks. They include the membership of ECB President Mario Draghi of the Group of Thirty – a club for central bankers and some of the biggest banks in the world – that has served as a lobbying vehicle for specific reforms of financial regulation that favoured big banks, including in the years preceding the financial crisis.**

The strong presence of big banks in the advisory groups of the ECB has been an additional cause of concern. Also, there are important international experiences that should be taken into account. In the aftermath of the financial crisis in 2008, an investigation into the Federal Reserve in the US was conducted. Though initially confidential, the report has been made public. It testifies to severe 'regulatory capture' inside the Federal Reserve – an experience that should not be repeated on European soil.”

When preparing for the European Central Bank's new mission as the main supervisor of the biggest banks, it was decided by the Council, the European Parliament, and the ECB that new rules on revolving doors would be appropriate. As a result, the ECB will impose a two year 'cooling off period' that will bar ex-employees from taking up a position with a private bank for two years. This move is most welcome, and will take the ECB ahead of the Commission on ethics rules concerning revolving doors. However, revolving doors go both ways, and the admittance of people from the private financial industry to high posts can lead to other kinds of problems.

... in the case of the ECB and its Administrative Board of Review, rules on employing staff from private financial companies are absent. Also, the 'declaration of interest' that the members of the board are to complete upon appointment, seem to be nothing but a solemn promise with a signature.

While the ECB meticulously guards its independence from member state government agencies in the decision on 'the establishment of the Administrative Board of Review', strikingly there is no parallel text on independence from private companies.

In details:


* The official declaration of the European hegemony of “bankcracy” with the signature of Mario Draghi, is now a fact. The European Central Bank, ECB, becomes the absolute dominant, through the unlimited purchase of government bonds in eurozone, and the Frankfurt bankers are preparing for their biggest party so far. As expected, the bank-occupied media rushed – once again – to crow. In essence, the decision means that Europe passes into a hastily, coercive federalization, in terms that serve exclusively the destructive neoliberalism. The ECB is converted into an equivalent European Fed, which means, gaining complete control of the money flow through the whole eurozone.



Read also:


Comments

Popular posts from this blog

BRICS expands to majority of world population: Vietnam joins, USA fails to divide China & Vietnam

Geopolitical Economy Report   BRICS has expanded to 20 countries - 10 members and 10 partners - after adding Vietnam. BRICS+ now makes up 43.93% of world GDP (PPP) and 55.61% of the global population. Ben Norton explains how the US failed to divide China and Vietnam in the Second Cold War. 

How Israel’s Supporters Play Victim to Justify Genocide & Silence Critics

BreakThrough News   As Israel commits a live-streamed genocide in Gaza, Western media and political elites continue to center one narrative: Jewish fear. But what about the actual victims of this genocide—Palestinians? Journalist Nora Barrows-Friedman joins Rania Khalek on Dispatches for a fearless conversation on Zionist indoctrination in the Jewish diaspora, how antisemitism is being weaponized to silence critics of Israel, and how Jewish identity politics has been manipulated to cover for unspeakable crimes. From the media blackout on Israeli war crimes to the erasure of anti-Palestinian hate crimes—even in the diaspora—Nora lays bare the contradictions and power structures behind it all. 

How the U.S. & Israel Used Rafael Grossi to Hijack the IAEA and Start a War on Iran

Rafael Grossi, Director General of the International Atomic Energy Agency (IAEA), allowed the IAEA to be used by the United States and Israel—an undeclared nuclear weapons state in long-term violation of IAEA rules—to manufacture a pretext for war on Iran, despite his agency’s own conclusion that Iran had no nuclear weapons program.   by Medea Benjamin - Nicolas J. S. Davies On June 12th, based on a damning report by Grossi, a slim majority of the IAEA Board of Governors voted to find Iran in non-compliance with its obligations as an IAEA member. Of the 35 countries represented on the Board, only 19 voted for the resolution, while 3 voted against it, 11 abstained and 2 did not vote. The United States contacted eight board member governments on June 10th to persuade them to either vote for the resolution or not to vote. Israeli officials said they saw the U.S. arm-twisting for the IAEA resolution as a significant signal of U.S. support for Israel’s war plans, revealing how much Isra...

Muslim Wins New York City Mayoral Primary & Zionists FREAK OUT!

The Jimmy Dore Show   A "scary" Muslim named Zohran Mamdani has won the Democratic mayoral primary, and Zionists are absolutely freaking out. In this clip Jimmy and Americans’ Comedian Kurt Metzger mock the over-the-top reactions from political figures and media personalities, particularly right-wing commentators, who equate Mamdani's Muslim identity and progressive views with anti-American and anti-Israel sentiment. They also explore how Mamdani's refusal to blindly support Israel during debates may have contributed to his popularity, contrasting it with exaggerated loyalty pledges from other candidates. Throughout, the hosts criticize the Democratic Socialists of America, highlight government hypocrisy, and deride fearmongering rhetoric around Muslims and leftist policies. 

Funcionario de Trump: el director de la CIA “toma dictado” del Mossad sobre Irán

Un funcionario de la administración Trump le cuenta a The Grayzone que el Mossad israelí está usando al director de la CIA, John Ratcliffe y al jefe del CENTCOM, general Michael Kurilla, para influenciar a Trump con inteligencia manipulada sobre el programa nuclear iraní. Dentro de la Casa Blanca, los disidentes han sido aislados, preparando el terrenno para una guerra de cambio de régimen que pudiera costar vidas estadounidenses.   Max Blumenthal and Anya Parampil  Parte 3 - Un alcalde de un pueblo en Texas se convierte a lo grande en un agente israelí   Sin experiencia en el ejército o en inteligencia, Ratcliffe pasó la primera parte de su carrera política como alcalde de Heath, un pequeño pueblo en las afueras de Dallas, gestión fue interrumpida por una breve temporada de un año como fiscal nacional entre 2007 y 2008. Ratcliffe entró en el congreso en 2014, y emergió dos años después como uno de los perros de presa más feroces de Trump en el Comité Judicial. El congres...

Spying on Iran: How MI6 infiltrated the IAEA

Leaked confidential files indicate the International Atomic Energy Agency was infiltrated by a veteran British spy who has claimed credit for sanctions on Iran. The documents lend weight to the Islamic Republic’s accusation that the nuclear watchdog secretly colluded with its enemies. by Kit Klarenberg Part 1 A notorious British MI6 agent infiltrated the International Atomic Energy Agency (IAEA) on London’s behalf, according to leaked documents reviewed by The Grayzone . The agent, Nicholas Langman, is a veteran intelligence operative who claims credit for helping engineer the West’s economic war on Iran. Langman’s identity first surfaced in journalistic accounts of his role in deflecting accusations that British intelligence played a role in the death of Princess Diana. He was later accused by Greek authorities of overseeing the abduction and torture of Pakistani migrants in Athens. In both cases, UK authorities issued censorship orders forbidding the press from publishing his name. B...

Blow for Starmer; pro-Gaza MP quits party to launch new outfit with Jeremy Corbyn

Janta Ka Reporter   Former Labour MP Zarah Sultana has formally ended her association with the party headed by Keir Starmer to launch a new party with Jeremy Corbyn. As Rifat Jawaid explains, pollsters are already predicting huge upset in the upcoming elections as Corbyn causes setback to Starmer’s political arithmetic. 

The Best-Selling Apps Made By Israeli Spies

A new frontier for the BDS movement Nate Bear   The developers behind hundreds of Android and iPhone apps with billions of downloads are former Israeli spies whose apps are generating significant revenues for Israel’s genocidal war economy. The apps I’ve identified range from innocuous image and video editing apps to casual games, and most users won’t be aware they’re installing Israeli products on their phones. Many of these app developers operate under the radar, their ownership structures are opaque and the identity of their owners isn’t commonly known. The identification of these apps should add another frontier to the boycott, divest, sanctions movement, as it provides a straightforward way for ordinary people to avoid Israeli products that contribute to apartheid, genocide and ethnic cleansing. The proliferation of these apps on Apple’s App Store and the Google Play Store also raises questions over privacy and the harvesting of personal data, given the reputation of Israeli t...

Atomic bombing of Japan was NOT necessary to end WWII. US gov't documents admit it

Geopolitical Economy Report   US government documents admit that the atomic bombing of Hiroshima and Nagasaki was not necessary to end WWII. Japan was on the verge of surrendering. The nuclear attack was the first strike in Washington's Cold War on the Soviet Union. Ben Norton reviews the historical record.  

BRICS 2025 Summit in Brazil, Rio

2nacheki   Brazil hosts the 17th BRICS Summit in Rio de Janeiro on Monday, July 7, bringing together leaders from Brazil, Russia, India, China, South Africa, and other member states and partner nations. The summit focuses on global health, trade, AI and sustainable development. Held under Brazil’s presidency, the Summit highlights the bloc’s push for stronger Global South co-operation and influence in shaping international policy. BRICS was created in 2009 by Brazil, Russia, India, and China, with South Africa joining a year later. The bloc later expanded to include Egypt, the United Arab Emirates, Ethiopia, Indonesia, and Iran.