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Michael Hudson: how finance capitalism leads to debt servitude

In Blog by Ian Fraser5 Comments

October 19th, 2012 This is an edited transcript of a phone interview with Michael Hudson by Dimitris Yannopoulos for Athens News. It summarizes some of the major themes of Hudson’s new book, The Bubble and Beyond: Fictitious Capital, Debt Deflation and Global Crisis, published in the UK in July 2012.  Q: How has …

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FSA plays dangerous game with relaxation of capital rules

In Blog by Ian Fraser0 Comments

October 10th, 2012 Today the Financial Services Authority formally relaxed capital and liquidity rules on UK banks in the vague hope this might kickstart lending and do something to ensure the UK economy can pick itself up off the floor. The Canary Wharf-based regulator also said that it would not …

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Robert Jenkins: Puncturing bankers’ myths

In Blog by Ian Fraser3 Comments

September 26th, 2012 [Ian Fraser’s introduction] In this speech, Robert Jenkins blows apart the self-serving myths that bankers and their lobbyists have been peddling since the financial crisis ripped the financial system apart in 2007-. He also explains that ‘captured’ regulators and politicians have swallowed the myths whole. As a result, post-crisis …

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The trouble with our banking culture

In Blog by Ian Fraser1 Comment

July 18th, 2012 Image by WilliamBanzai7 A friend who works for for Barclays told me what the culture is now like at such banks these days. In response to a question about how bankers have changed — in terms of culture, motivations, behaviour — over the past two decades, he …

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Guest Post: The Libor crime scene will soon be expanded

In Blog by Ian Fraser0 Comments

July 16th, 2012 By The Left Banker Image: WilliamBanzai7 For the past 30 years, the global economy has built up increasingly vast amounts of public, private and household debt. This was to compensate for the fall in real wages and to avoid a repeat of the crisis of over-production of goods …

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How London became the money-laundering capital of the world

In Blog by Ian Fraser16 Comments

July 15th, 2012 By Rowan Bosworth-Davies Speaking on the Marr Show on BBC One on March 23rd, the former Daily Telegraph editor and historian Max Hastings said a “senior central banker” recently told him that London is now considered to be the “money-laundering capital of the world”. Hastings was discussing …

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Prof Richard Werner: Banks can become socially useful and local

In Blog by Ian Fraser0 Comments

July 12th, 2012 Speaking at the Just Banking conference in April, Prof Richard Werner called for an end to the suppression and repression of the third sector, including mutually-owned financial institutions and credit unions, while also calling for the introduction of a “regime of credit guidance”. Werner, chair in international banking …

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Banks in Hungary and Slovenia looking precarious

In Blog by Ian Fraser0 Comments

June 13th, 2012 The IMF has produced a blog on the situation facing banks in Central and Eastern Europe. The majority of banks in the region are owned by Western European banks, and have therefore suffered as a result of the weaknesses of their parent institutions, which has caused the …

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John Kay on the illusory nature of bank profits

In Blog by Ian Fraser0 Comments

16 April 2012 In this speech the economist and author John Kay examined how the financial sector continues to make — or claims to make — returns-on-equity which are way in excess of any reasonable estimate of cost of capital. Kay, a visiting professor at London School of Economics, examined various possible …