Michael Roberts — Rule Does Non Work

There is 1 big lesson from the Danske Bank coin laundering scandal. Regulating the modern banking organization does non work. Modern banks are forthwith primarily giant hedge fund managers speculating on fiscal assets or they are conduits for taxation avoidance havens for the elevation 1% together with the multi-nationals.…

John Horan, senior associate at Maze Investigation, Compliance together with Training Ltd. inward Belfast, says coin laundering is a Europe-wide problem. “dark coin volition virtually for certain proceed to menses through the European banking organization similar sand through a sieve.” It’s a never-ending story. ...

The ‘official’ sentiment that rule is the entirely agency to command the banks is accepted yesteryear most Keynesians or those who run across the fiscal sector every bit the entirely enemy of labour. Take Nick Shaxson. Shaxson wrote a compelling mass Treasure Islands, taxation havens together with the men who stole the world, that exposed the workings of all the global taxation avoidance schemes together with how banks promoted taxation havens together with taxation avoidance for their rich clients.

And to a greater extent than recently, he has done a novel slice of research that argues that non entirely does the City of London together with the U.K. fiscal sector operate to assist taxation avoidance together with coin laundering, it does non render credit for productive investment.…

As Gabriel Zucman together with Thomas Wright cause got shown inward a meticulous together with in-depth analysis of the size together with extent of taxation havens together with taxation avoidance, far from them beingness reduced or controlled, on the contrary, such schemes are an increasing role of US of America corporate profits, organised together with transacted yesteryear the banks.

About one-half of all the unusual profits of US of America multinationals are booked inward taxation havens alongside Republic of Ireland topping the charts every bit the favourite (Irish taxation charge per unit of measurement merely 5.7%). And the benefits for the increase inward profits cause got gone to shareholders, the Zucman together with Wright showed. “Ireland solidifies its seat every bit the #1 taxation haven,”Zucman said on Twitter. “US firms mass to a greater extent than profits inward Republic of Ireland than inward China, Japan, Germany, French Republic & United Mexican States combined.” ...

So those who intend that ‘regulating’ the banks together with taxation evasion using ‘regulators’ volition function are expecting pigs to rev upwards their jet engines for flight.

Michael Roberts Blog
Regulation does non work

Michael Roberts