Friday, April 24, 2009

Geithner: Goldman Is in Complete Control of World Financial Domination

Treasury Secretary Timothy Geithner writes in today's FT:

...the G20 meeting in London transformed the framework of global economic and financial co-operation. In addition to measures to boost the global economy and support the international financial institutions, leaders agreed that the Financial Stability Forum, renamed the Financial Stability Board (FSB) and expanded to include all of the G20 nations, should be given greater responsibility for the stability of the international financial system.

The US is initiating a comprehensive reform of our own system of financial regulation as part of our determined effort to lead a race to the top in regulatory and supervisory standards. That effort will not be wholly successful, however, without parallel action in other national financial systems. The FSB will play a critical role in this international co-operation.

So what is this FSB that has been "given greater responsibility for the stabilty of the international financial sysytem"? And, who runs it?

According to a recent press release (pdf):

It will monitor and advise on market developments and their implications for regulatory policy; advise on and monitor best practice in meeting regulatory standards; manage contingency planning for cross-border crisis management, particularlywith respect to systemically important firms; and collaborate with the IMF to conduct Early Warning Exercises...

The FSB and IMF will intensify their collaboration, each complementing the other’s roleas per the 13 November 2008 letter by the Managing Director of the IMF and the Chair ofthe FSF.
The chairman of the FSB is Mario Draghi. Draghi is the governor of the Bank of Italy, former Executive Director of the World Bank from 1984 to 1990, and, naturally, he was a a Managing Director of Goldman Sachs and Vice Chairman of Goldman Sachs International, and a member of the Goldman's "Commitments Committee." He is also a trustee of the Brookings Institute where former Treasury Secretary and former Goldman CEO Henry Paulson uses office space while he writes his memoirs.

On November 13, 2008, Draghi and IMF head Strauss-Kahn sent a letter to the G-20 leaders, with the guidelines of the plan which envisions the FSF and the IMF as the two pillars of the world finance.

At the November 14, 2008 at a working dinner at the White House, Draghi gave the main address. On November 17, the Italian daily Il Giornale commented, "Only one central banker appears in the family photo of the 25 participants at the G-20 financial-economic summit--a clear privilege of Mario Draghi, present at the Washington summit as chairman of the FSF."

1 comment:

  1. The FSB Chair is a very strong position. It decides the composition of the Steering Committee, which can appoint fast acting ad hoc workgroups.

    The Chair overseas the Steering Committee, the Plenary and the Secretariat.

    Mario Draghi is very powerful at the moment.

    See April 2 Press Release on name change for more details: