Related UN Contingency Discussions:
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10 May 2011
From: Stephen M. Apatow
Founder, Director of Research & Development
Humanitarian Resource Institute
Humanitarian University Consortium Graduate Studies
Center for Medicine, Veterinary Medicine & Law
Phone: 203-668-0282
Email: s.m.apatow@humanitarian.net
Internet: www.humanitarian.net
HRI:UNArts: Humanitarian Intervention Initiative
Url: www.unarts.org/H-II
To Permanent Members of the UN Security Council
To: UN Secretary General Ban Ki Moon
Subject: Apatow: UN Security Council Geoeconomic Security - Greek Restructure
The international community has finally focused on the need to restructure
the sovereign debt of Greece, [1] with projected contingencies being established
for Portugal, Ireland, Spain and Italy, a step viewed as the only solution
oriented pathway to address distortions and geosystemic damage caused by the
unregulated OTC derivatives market, 1999-2011. This focus should have
been the second priority , following the 2008 global market crash, the first
being immediate restoration of the Glass-Steagall level separation of investment
banks from central bank emergency lending facilities.
Every level of system that suffered distortional damage by the unregulated
OTC derivatives market and shadow banking system should be restructured. In
the United States, this would include the municipal, state and federal level
for deficit reduction. Efforts to ignore this emergency action step,
for every UN member country, is advanced at the cost of human lives and a
humanitarian emergency that exponentially becomes more complicated every day.
Phil Angelides, director of the Financial Crisis Inquiry Commission (FCIC),
[2] noted yesterday on CNBC, that despite the intensive work of the
commission, that the OTC derivatives markets remain unregulated. To
date, efforts to implement regulatory oversight of this market has proved
impossible, with 10 large mega banks now holding over $600 Trillion of these
unregulated instruments, presenting geosystemic risk. 16 of the worlds largest
investment banks are now under international criminal investigations by the
European Union. [3] Every International Bar Association Human Rights
Attorney, should review all hearings and testimony heard by the U.S. FCIC.
[4]
Angelides noted with great dismay, efforts to omit OTC derivatives: Forex
swaps and forwards from regulatory oversight. Traders in the Forex
markets now enjoy the luxury of trading 1000:1 through high leverage brokers,
[5] a scenario that would never be allowed at any casino. One just needs
to get their head around such available leverage, traded in the unregulated
OTC derivatives market and shadow banking system. Where is Basel Committee
on Bank Supervision (BCBS) [6] oversight of these interconnected foreign exchange
markets?
As UN Security Council level economic crisis discussions continue, speculative
traders moved back into infrastructure critical commodities as trading resumed
on 9 May 2011.
1. Euro Weakens Before Greece Auctions Bills Amid Debt Restructuring Concern:
Bloomberg, 9 May 2011. Url: http://www.bloomberg.com/news/2011-05-09/euro-trades-near-six-week-low-as-greece-s-rating-cut-renews-debt-concerns.html
2. Financial Crisis Inquiry Commission (FCIC): Url: http://www.fcic.law.stanford.edu
3. Hearings and Testimony: Financial Crisis Inquiry Commission. Url: http://fcic.law.stanford.edu/hearings
4. EU inquiry into claims of banks' collusion in credit derivatives: The
Guardian. 29 April 2011. Url: http://www.guardian.co.uk/business/2011/apr/29/banking-credit-default-swaps-eu-investigation
5. Forex brokers with highest 400:1, 500:1 leverage:
Url: http://www.100forexbrokers.com/high-leverage-brokers
6. Basel Committee on Bank Supervision (BCBS): Bank for International Settlements.
Url: http://www.bis.org/bcbs/
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