« Angrynomics: a review | Main | Ideas, interests and capital »

July 23, 2020

Comments

Postkey

"Well, surprise, left wing academics decide that international Capitalism is bad."

Play the wo/man, not the ball?

Typical of a shill for the plutocrats and the M.I.C..

Paulc156

@Dipper. "My point is firstly that they are actually laundering their money elsewhere and bringing their laundered money to London,"

Sure they are but you studiously avoid the earlier information regarding vast swathes of the UK that are not subject to KYC...namely PR companies, educational establishments, architects etc etc.

Now for example we have a former KGB spy by the name of Lebedev who swapped intelligence duties for banking...then media from whence he employed former chancellor Osborne and ultimately endorsed Johnson for leadership role while adopting role as Tory party benefactor all the while still supporting Putin's Crimean snatchback.

Blithely asserting "the money comes through banks" even though it has been pointed out that both the banking sector is itself a hotbed of illegality and corruption (long list of misdemeanours and massive fines widely available) and as has been noted here more than once, the regime tasked with enforcing rules is deliberately fragmented and at cross purposes. ie. Not fit for purpose.

"...there are no impartial neutral observers, everyone has an angle, everyone is looking for more money and power..."

That applies equally to capital and nowhere more so than finance capital. It sucks the lifeblood out of the non financial economy, it extracts huge subsidy (As BofE's Haldane has pointed out) in the form of too big to fail insurance (e.g.post subprime-CDO debacle when much of it should have been left to perish) and diverts funds into speculative enterprise from which it knows it can't lose.

Top that with pensions rip offs. The only reason there is any real aggregate gain for pension holders is due to tax relief. Any other profits are largely creamed off by charges, dealing costs and spreads.

As for foreign aid.More money flows from the global South to the advanced economies than the other way round. Just how the city likes it. :)

Dipper

@ Paulc156

'that are not subject to KYC...namely PR companies, educational establishments, architects etc etc.'

No. KYC takes place at the bank level. Companies that accept money from bank accounts are implicitly having their KYC done for them by the banks. Handling cash for large transactions is now regarded as suspicious behaviour.

The banking sector has undergone significant reform both in structure and behaviour. The requirements for clearing, for instance, make banks isolated entities that can fail without posing systemic risk. And as you can tell I'm getting fed up with the constant stuff about banking corruption in the absence of any actual evidence.

And what pension rip off is this? Tax relief is effectively a means of deferring taking income until a later date when tax is then paid. All those surveys stating how much tax is being missed this year due to pensions tax relief fail to mention how much tax is being taken this year from income payments made from pension funds.

Blissex

"Mali based banks,although they have very familiar names, eg Santander."

«Once the money is in the account of a bank which is internationally recognised it has been laundered. So, as I said, the money is being laundered elsewhere. The idea that London is the nexus of money laundering isn't supported by these reports. If a cleaning company is taking money from dodgy 'businessmen' with Mali bank accounts and depositing it in the Esher branch of the Coop Bank I'm not sure what that has to do with the 'City of London'.»

It is tiring to deal with prevaricating and disingenuous arguments like this, as if Mali had a flourishing financial sector skimming the cream off international dirty money flows to enable the speculative buying of malian property by foreign oligarchs resident in Bamako or Tombouctu.

Obviously instead the City of London is full of banks, consultancies, lawyers, tax advisors, accountants that use the pretence of foreign transactions in corrupt (or sometimes just inept) jurisdictions to which they send some crumbs, while the people running the schemes are all in London, working for clients (partially) resident in London, to speculate on London assets, for the benefits of a large caste of english spivs and promoters.

Only thorough hypocrites can argue that those spivs and promoters have clean hands because they are merely the instigators, the actual dirty deeds are performed by their minions in another country in which they are legal or "forgiven".

One of the great potentials of Brexit is that it will enable Dubai style regulations under which the whole chain of skimming cream will be legal in London, and even those crumbs currently sent all the way to the shores of the Niger will remain instead for the greater benefit of tory donors on the shores of the Thames.

Paulc156

@Blissex
It is indeed disingenuous. Our estate agents can match the international crook with the residence of their choice and the private educational establishments to whom said crooks may wish to contribute and PR firms to manage their public 'profile' and so on and so forth because the funds are routed via Baltic, Mali, Jersey banks etc etc.

All courtesy of a system in which the kleptomaniac banking fraternity are entrusted to police and where regulatory oversight is delivered by (amongst others) a fractured and uncoordinated medley of accounting companies who themselves are not averse to the odd game of smoke and mirrors.

@Dipper
"And as you can tell I'm getting fed up with the constant stuff about banking corruption in the absence of any actual evidence."
Oh what delicious irony. In the very same week that Goldman Sachs is forced to settle with Malaysia to the tune of some $4bn for defrauding the state...so avoiding criminal charges.
Even leading Tory and ally of BoJo, Nicky Morgan is "shocked" at the poor levels of oversight deployed by those tasked with the job. Why aren't you?

"Professional bodies representing the accountancy and legal sectors are riven with conflicts of interest and loath to publish money laundering penalties, if they take action at all, a damning report by their supervisor has revealed.

Accountancy associations, in particular, are resisting taking enforcement action against their members for money laundering failings out of fear that they might go to rival bodies, the maiden report by the Office for Professional Body Anti-Money Laundering Supervision, (OPBAS), found on Tuesday.

It underscores the scale of the fight against the UK’s dirty money problem, officially estimated to run into the hundreds of billions of pounds."

https://www.google.com/amp/s/amp.ft.com/content/318490a0-44ad-11e9-a965-23d669740bfb

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