What Did Draghi Know About Potential Loss and Abuses at Italy’s Largest Bank

What Did Draghi Know About Potential Loss and Abuses at Italy’s Largest Bank

Apparently lax and/or incompetent regulation of systemically important banks by bureaucrats, central bankers, and politicians may not be just a recent American phenomenon.

As we read this, it could imperil the soundness of the financial system in Europe as well, as is still apparently the case with The Banks in the states, despite assurances to the contrary.

Golem XIV asks some very good questions in the article below, recently posted on his blog here.

Whistleblowers Testify in EU Parliament

By  on November 17, 2016  in latest

Yesterday a very high-powered panel of international banking whistleblowers met and told their stories in the European parliament.  The questions raised were important. Among them was the Irish Whistleblower, Jonathan Sugarman, who when UniCredit Ireland was breaking the law in very serious ways reported it to the Irish regulator.

He related how he was not only ignored by his bank, the Irish regulator but also all the major political parties.   He then pointed out that the Irish regulator claims that it always – and it is the law after all –  informs the regulator of the home country of banks which have subsidiaries in Ireland, about any serious problems.

In the case of UniCredit that would mean the Italian Central bank would have been told that Italy’s largest Bank was in serious breach of Irish law in ways that could endanger the whole banking system. The head of the Italian Central Bank at the time was a certain Mr Mario Draghi.

Mr Sugarman suggested Mr Draghi should be asked point-blank of he did or if he did not know. If he did not then the Irish regulator was at least incompetent, and may have lied, misled  and perhaps even broken Irish laws. If he was told and did know, then Mr Draghi has serious questions to answer regarding his own dereliction of duty.

Surely not I hear you say.  Well perhaps someone might ask him? Or is he above the law?

http://www.guengl.eu/news/article/whistleblower-protection-what-must-be-done

Related: Studies Show Fed Stress Tests Merely ‘a Placebo’

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Jesse

NEED LITTLE - WANT LESS - LOVE MORE THE BANKS MUST BE RESTRAINED, AND THE FINANCIAL SYSTEM REFORMED, WITH BALANCE RESTORED TO THE ECONOMY, BEFORE THERE CAN BE ANY SUSTAINABLE RECOVERY. WELCOME TO JESSE'S CAFÉ AMÉRICAIN - THESE ARE PERSONAL OBSERVATIONS ABOUT THE ECONOMY AND THE MARKETS. IN PROVIDING INFORMATION, I HOPE THIS ALLOWS YOU TO MAKE YOUR OWN DECISIONS IN AN INFORMED MANNER, EVEN IF IT IS FROM LEARNING BY MY MISTAKES, WHICH ARE MANY. AS A STANDING POLICY I NEVER PROVIDE INDIVIDUAL INVESTMENT ADVICE TO ANYONE. I WILL ONLY OCCASIONALLY DISCLOSE MY PERSONAL POSITIONS FOR PURPOSES OF ILLUSTRATION. UNDERSTAND THAT MY OWN CIRCUMSTANCES COULD DIFFER GREATLY FROM YOUR OWN, AND THEREFORE WHAT IS SUITABLE FOR ME MAY NOT BE SUITABLE FOR YOU. MY COMMENTS ARE INTENDED TO BE REFLECTION ON GENERAL MACRO FINANCIAL AND ECONOMIC EVENTS AND TRENDS.