NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING
DONATE TODAY


  January 6, 2014

Why UK Election is a Win-Win for Banksters


Former Financial Regulator Bill Black discusses how both Labour and Conservative parties have contributed to UK's regulatory race to the bottom
Members don't see ads. If you are a member, and you're seeing this appeal, click here
   



audio

Share to Facebook Share to Twitter



Real News simply has no entertainment value. But its news value puts CNN,MSNBC,ABC& BBC to shame! - Santhip
Log in and tell us why you support TRNN


biography

William K. Black, author of The Best Way to Rob a Bank is to Own One, teaches economics and law at the University of Missouri Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics.

Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement.

Black developed the concept of "control fraud" frauds in which the CEO or head of state uses the entity as a "weapon." Control frauds cause greater financial losses than all other forms of property crime combined. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae's former senior management.


transcript

Why UK Election is a Win-Win for BankstersJESSICA DESVARIEUX, PRODUCER, TRNN: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore. And welcome to this edition of the Bill Black Financial and Fraud Report. Now joining us from Quito, Ecuador is Bill Black. Bill is an associate professor of economics and law at the University of Missouri, Kansas City. He's a white-collar criminologist and a former financial regulator, and the author of The Best Way to Rob a Bank is to Own One. And of course, he's a regular contributor to The Real News.

Thanks for joining us, Bill.

BILL BLACK, ASSOC. PROFESSOR OF ECONOMICS AND LAW, UMKC: Thank you.

DESVARIEUX: So Bill, what are you tracking this week?

BLACK: Well, given the coming elections this week in the United Kingdom I thought I'd report on what these elections mean for holding the bankers accountable that caused so much devastation in what's called the city of London, or for short, the city.

DESVARIEUX: Okay. And how do they actually proceed? Have they prosecuted bankers?

BLACK: No. Of course not. The city won, which should be in quotation marks, the international race to the bottom in financial regulation. And then after it had won, Tony Blair--when he was of course supposedly the sort of socialist, Labour party guy who was prime minister--blasted the Financial Services Agency, their premier non-regulator, that had adopted light touch regulation. They actually called it that. Which meant that the bankers were able to get away with crimes with complete impunity. Blair blasted them publicly for being much, much, much too tough a regulator. It was one of the weakest regulators in the history of the world, and all these frauds were developing on his watch. And the reaction of labor was, we have to completely destroy regulation.

All right, so then Blair did this handoff to Gordon Brown who had been their Geithner. And--and their Geithner in every way, helping to destroy regulation. And Gordon Brown persisted in these policies, and this produced a disaster, but a disaster that happened in large part on the Conservatives' watch. But the Conservatives are even less inclined to prosecute anyone, so they're--the record, what they did as soon as they came into office was try to gut the Serious Fraud Office.

Now, the Serious Fraud Office was already a pale imitation of its former self, and it was never terribly strong, at the time they did this. But they decided they should really ruin it. And a review of the Serious Fraud Office said that they had produced the virtual decriminalization of serious frauds in the United Kingdom, particularly, of course, in the banking industry.

Meanwhile, the Conservatives to take power had to go into coalition with the Lib Dems, which, that name itself gives you some of the problems. They're supposed to be a little bit of this, a little bit of that. And Nick Clegg, as almost everybody views as a disaster, so the Lib Dems are expected to lose maybe 40 percent of their seats in the parliament in a few days. But tactically, the latest guess is that Clegg will survive because so many Tories--Conservatives--will vote for him, to try to keep him alive to be a coalition partner, which is probably the only way that the Conservatives have of getting any power.

Meanwhile in Scotland, one of my ancestral homes, the Scottish National Party really got a push out of the unsuccessful referendum in favor of Scottish independence. But it really developed a really strong following, and is the only progressive force of--at least, consistently progressive force--now in the United Kingdom. And so now the bogeyman that the Conservatives and Labour are sharing is, won't it be terrible if the Scottish people elect representatives who actually represent them, and won't this be terrible for the United Kingdom. So one of the only push for potential prosecutions pretty much comes out of the Scottish National Party, which could end up in coalition with Labour.

But right now, the situation is that in the Conservative or Tory party, the guy waiting in the wings is this really weird American Brit who's in the process of giving up his U.S. citizenship. Boris. And Boris is the guy who runs the city of London, but is also running for parliament. And he is the complete whore for the financial industry. And so if the Conservatives suffer an embarrassing loss under Osborne's leadership, the guy waiting in the wings is going to try to undo even the tiny regulatory steps that have been taken in the United Kingdom, and go back to the worst of the days of where the bankers just absolutely ruled.

So the scorecard is pretty much nobody's been prosecuted, certainly no one senior has been prosecuted for the most destructive frauds in United Kingdom history. Doesn't look like that that's about to change. And under some scenarios, the United Kingdom will go back full force into this regulatory race to the bottom that has already made the city of London the financial cesspool of the world.

DESVARIEUX: All right. Bill Black, joining us from Quito, Ecuador. Thanks so much for being with us.

BLACK: To talk about UK politics. International, baby.

DESVARIEUX: Yes, we love hearing from you, Bill. Thanks again.

BLACK: Thank you.

DESVARIEUX: And thank you for joining us on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.



Comments

Our automatic spam filter blocks comments with multiple links and multiple users using the same IP address. Please make thoughtful comments with minimal links using only one user name. If you think your comment has been mistakenly removed please email us at contact@therealnews.com

latest stories

Should Sanders Continue the Fight Outside the Democratic Party?
Fed Inflation Target Keeping Wages Low, People Out of Jobs
Is Trump Dangerous for Russia?
Will the NDP Adopt Pro-BDS Platform?
Was the Georgian Conflict Started to Elect John McCain President in 2008? Pt.1
Massive Cuts to EPA Threaten Communities Already Suffering From Pollution, Climate Change
Whistle Blower Teacher Says Charter Schools Draining Students, Resources from Public Education
Trump's Budget Targets Climate Change Spending Across All Federal Agencies
US Has Interfered in More Elections Than Any Other Nation
Maryland Democrats Push Back Against Gov. Hogan's Support for ACA Repeal
Russia vs. USA: Who is the Threat, Who is the Aggressor? (1/2)
Democrats Fail to Dig into Trump's Shady Financial Ties During Hearing
Why is the Capitalist West Fighting with Capitalist Russia?
Baltimore City Council Passes Historic $15 Minimum Wage
UN Report Finds Apartheid Exists Within Israel
Neil Gorsuch's Woeful Record on Civil Rights
Federal Judge Orders Civil Rights Lawsuit Against Pocomoke, State of MD to Move Forward
Hundreds Rally to Demand A Fix to Baltimore's School Budget Deficit
Trump Adds Another Goldman Sachs Alum to His Administration
Empire Files: Abby Martin Exposes Steve Bannon
Wealthiest U.S. Households Save Big Under GOP Health Care Bill
'They are Taking Everyone': Families March Against Deportations in Phoenix
Baltimore Poised to Pass $15 Min. Wage as Business Lobby Launches Nationwide Rollback Campaign
Bankruptcy Protection, Debt Jubilee, Students Debt and the Credit System
BDS Activist Speaks About His Arrest by Israeli Police
Will Trump's Plan to Roll Back Fuel Economy Regulations Help American Autoworkers?
What is Money? Why Do Some Have More Than Others?
TRNN Replay: The Real Baltimore: Should Baltimore Raise its Minimum Wage to $15/HR by 2022?
What is Capitalism & Socialism? What Differentiates Them from Each Other?
Trump's Budget Shreds the Social Safety Net

TheRealNewsNetwork.com, RealNewsNetwork.com, The Real News Network, Real News Network, The Real News, Real News, Real News For Real People, IWT are trademarks and service marks of Independent World Television inc. "The Real News" is the flagship show of IWT and The Real News Network.

All original content on this site is copyright of The Real News Network. Click here for more

Problems with this site? Please let us know

Managed Wordpress Hosting