John
Key claims he was long gone from the financial quackery sector when
all the international financial deregulation of 1999 or lack of
regulating new high risk derivative products occurred that went on to
cause the global financial crisis. But the following irrefutable
proof from his very mouth and that of the highest sources proves he
in-fact played a big part in the global financial crisis that
afflicted the globe.
“In
the wake of the recent financial crisis, over-the-counter
derivatives have been blamed for increasing systemic risk,”
said Federal Reserve Bank of New York staff in a paper earlier
this year. “OTC derivatives serve a vital role in financial
markets but deficiencies in the market design and infrastructure
allowed for misuse of these instruments, exacerbating the recent
financial meltdown.”
Bill
Clinton admits choosing not to regulate derivatives 1999 caused the
Global Financial Crisis.
Jake
Tapper ABC interview April 2010
In
an interview on This Week with Jake Tapper, President Bill Clinton
said he made a mistake listening to Bob Rubin and Larry Summers on
derivatives, and said he should have tried to regulate them, despite
Republican opposition:
TAPPER:
One of the things that President Obama is pushing for is regulation
of derivatives, and also with a thing called the Volcker rule, he’s
trying to separate commercial banking interests from investment
banking interests. These were things
that were the opposite policies of Treasury Security Rubin and
Summers at that time, do you think in retrospect they gave you bad
advice on these issues?
CLINTON:
Well, I think on the derivatives – before the Glass-Steagall Act
was repealed(1999), it had been breached. There was already a total
merger practically of commercial and investment banking, and
really the main thing that the Glass-Steagall Act did was to give us
some power to regulate it – the repeal.
And also to give old fashion traditional banks in all over America
the right to take an investment interest if they wanted to forestall
bankruptcy. Sadly none of them did that. Mostly it was just the
continued blurring of the lines, but only about a third of all the
money loaned today is loaned through traditional banking channels and
that was well underway before that legislation was signed. So I don’t
feel the same way about that.
I
think what happened was the SEC and the whole regulatory apparatus
after I left office was just let go. I
think if Arthur Levitt had been on the job at the SEC, my last SEC
commissioner, an enormous percentage of what we’ve been through in
the last eight or nine years would not have happened.
I feel very strongly about it. I think it’s important to have
vigorous oversight.
Now,
on derivatives, yeah I think they were wrong and I think I was wrong
to take it because the argument on
derivatives was that these things are expensive and sophisticated and
only a handful of investors will buy them and they don’t need any
extra protection, and any extra transparency. The money they’re
putting up guarantees them transparency. And the flaw in that
argument was that first of all sometimes people with a lot of money
make stupid decisions and make it without transparency.
And
secondly, the most important flaw was even
if less than 1 percent of the total investment community is involved
in derivative exchanges, so much money was involved that if they went
bad, they could affect a 100 percent of the investments, and indeed a
100 percent of the citizens in countries, not investors, and I was
wrong about that. I’ve
said that all along. Now, I think if I had tried to regulate them
because the Republicans were the majority in the Congress, they would
have stopped it. But I wish I should have been caught trying. I mean,
that was a mistake I made.
Article
by Fran O’Sullivan
titled – Key chases luck o’ the
Irish – published New
Zealand Herald July 20 2005;
Key
is clearly on a roll as he lists the options New Zealand could
explore if it decided to abandon outdated ideology and take a more
pragmatic approach to growing the economy.
The
former investment banker knows what he is talking about.
As
head of global foreign exchange for investment giant Merrill Lynch
he shifted a considerable amount of his business to Ireland in the
mid-1990s to take advantage of a 10 per cent tax rate for foreign
investors.
The
investment was a runaway success.
“We
transferred across the aircraft leasing business, the
complex interest rates derivatives business, the entire back office
for global foreign exchange and a huge
chunk of private clients’ business,” says Key.
John
Key’s National Party website bio proudly states his past employment
record in banking;
“John
launched his investment banking career in New Zealand in the mid 80s.
After 10 years in the New Zealand market he headed offshore, working
in Singapore, London and Sydney for US investment banking giant
Merrill Lynch. During that time he was
in charge of a number of business units including global foreign
exchange and European bond and derivative trading. In 1999 John was
invited to join the Foreign Exchange Committee of the Federal Reserve
Bank of NY and on two occasions undertook management studies at
Harvard University in Boston.”
Career
• Investment
banker, New Zealand for 10 years
• Investment
banker, Merrill Lynch 1995-2001
• Member,
Foreign Exchange Committee of the Federal Reserve Bank of
New
York 1999-2001
John
Key – The Unauthorised Biography
-
Weekend Herald Sat July 19 2008
Merrill
Lynch Senior Executive Steve Bollotti said of John Key
“He revolutionised the blue blood investment banking sector.”
Key
explains: “I had a whole lot of people working for me who were at
the cutting edge of delivering quite complex and new and
innovative products. They tended to either be a new product or
into a new market, usually the emerging markets, Russia, Brazil,
Argentina. I wasn’t the guy sitting there dreaming it all up, but
I was the guy who was responsible for those people.” Did he
foresee the problems which resulted in the sub-prime crisis? “Was
it hard to predict? Not really.”
The
products which underpinned the sub-prime boom – then bust – were
hatched in 2004-2005, long after Key had left Merrill. Indeed, he
says when he went back to London in 2007 he was “horrified” at
the level of risk Merrill was running. “It was enormous and I just
didn’t think that enough had changed to warrant that level of
risk.” ( This is the red herring that most everyone has
swallowed and not bothered to look beyond since despite the mountain
of evidence as detailed in this article proving John Key was a big
part of complex derivatives well prior than 2004-2005 – red
highlight and comment in brackets added by Iain Parker )
Back
in the late 1990s Key was in his element, working at the centre of
the universe for FX. He presided over around 140 dealers trading
billions of dollars a day. The Asian markets came in in the morning
and New York in the afternoon. “Within two years we went from being
43 in euromoney to number three,” Key says.
----------------
Not
only is John Key quite clearly lying about not being involved in
complex derivatives at the exact time when a mix of deregulation and
non-regulation of these toxic products went on to cause the global
financial crisis but he is now setting about making New Zealand a
money laundering 0% tax haven base for his banking sector buddies
which various articles appearing in the foreign financial news media
make clear his buddies are very much looking forward to it and are
very impressed how he has thus far been able to do it on the sly;
Tax
reforms set New Zealand on course for non-resident funds boost
Elizabeth
Pfeuti 09 May 2011 efinancialnews.com
Last
month, the kiwi government tabled a bill that would remove the
current 28% tax rate on income incurred by non-residents investing in
funds held in New Zealand.
The
move by the government is the latest to entice investors to domicile
assets on its shores. A year ago, prime minister John Key, a former
Merrill Lynch banker, created a focus group to examine how the nation
could become more welcoming to foreign assets and enlisted consultant
Oliver Wyman to examine the country’s options.
The
consultancy’s recommendation was to market New Zealand as a funds
domicile in the Asia-Pacific region.
Abletshauser
said the nation was sound economically and politically and had a
highly educated workforce, all of which combined to create an ideal
environment for a financial centre.
He
said: “The news is that there is actually draft legislation now
which is a final step towards implementation – before, the quango
set up to analyse the situation may have recommended that such
legislation not be implemented or the quango’s findings may have
been ignored for politically expedient reasons. In
fact, what is even better news is that this is receiving little
publicity in New Zealand – which
means there is a higher likelihood the PM will nudge it through
without too much meddling from the country’s left wing camp.”
Key itching for quick action on financial hub
Fran
O'Sullivan Dec 2 2010 New Zealand Herald
Prime
Minister John Key has slammed bureaucratic pin-pricking over the
proposed New Zealand financial services hub as "absolute
rubbish" and stepped in to put the project on the fast-track.Economic Development Minister Gerry Brownlee has been ordered to produce an urgent paper covering a zero tax rating for the relevant foreign funds which Key wants incorporated in the November taxation bill and passed by April 1 next year.
The Prime Minister's frustration with Ministry of Economic Development officials spilled over publicly during a question session at an Auckland dinner on Tuesday night where he stressed New Zealand needed to be more optimistic and back success.
"There's been a whole series of advice coming from MED which basically says 'if you want to do this, you've got to deliver the Magna Carta of documents'," Key told the International Business Forum audience.
"'You've got to do all these things and need bipartisan support' and [so] it goes - on and on and on."
Key went on to say MED's approach was "absolute rubbish".
"I don't need the Magna Carta of documents - just get on and do something - which is why I have told Gerry to deliver me a paper that has zero rating of funds and we'll work on that."
Key is confident New Zealand will be able to attract financial funds to place their back office administration here saying a chief executive of one of the world's most powerful banks had told him: "If you are prepared to zero-rate foreign funds that are not invested in NZ, we're going to move $2.5 billion of funds here in two years because you're 50 per cent cheaper than Australia."
Visiting Hong Kong Financial Secretary John Tsang welcomed the Prime Minister's intention saying if New Zealand develops a financial services hub it will help to grow the worldwide industry.
Earlier reports to the Prime Minister suggested the administration of financial services could become a billion-dollar industry and create 3000 to 5000 new high-paying jobs.
The Government is not planning a "big bang" launch but expects the hub to grow organically.
-----------------------
So
John Key wants us to emulate what he got up to in Ireland. Set up a
money laundering 0% tax haven for his banking buddies and we will do
well out of all of the taxes their accountants and lawyers are going
to pay when they move their back office operations here. Problem is
that everywhere these corporate sweetheart deals have been offered to
the so-called Financial Service Sector they have become a parasite
that consumes the host. Just take a look at what John Key left behind
in Ireland from where much of his estimated sixty million dollar
fortune was gained and decide if you are really dumb enough to trust
this man to act in the longterm public interest above that of his
banking buddies family trust funds?
Irish
Central Magazine May
23 2010
Simon
Johnson, former chief economist at the International Monetary Fund
unto 2008 describes Ireland today;
“Ireland’s
politicians, rather than facing up to their problems, are making
things ever worse. Simply put, the Irish
miracle was a mirage driven by clever use of tax-haven rules and a
huge credit boom that permitted real estate prices and construction
to grow quickly before declining ever more rapidly.”
Telegraph
Newspaper article Feb 26 2011
(Paraphrased) says this of Ireland today;
” As
Irish voters headed for the polling booths on Friday, the European
Commission bluntly declared that the terms of the EU-IMF bailout
“must be applied” whatever the will of Ireland’s people or
regardless of any change of government..……..
“It
is not even take it or leave it. It’s done. Ireland’s only role
in this now is to implement the programme agreed with the EU, IMF and
European Central Bank. Irish voters are
not a party in this process, whatever they have been told,” said
the diplomat.”
I
rest my case
Yours
Iain
Parker
Good
luck to you and your families.
19
Nov 2011
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