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.
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?