Global fund funded by bank tax scrapped

Though, Basel III the-were-doing-something-word still in play, but slowed
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http://www.reuters.com/article/idUSTRE6540B120100605
Quotes, "Attempts to introduce a global bank levy were finally ditched in the face of opposition from Japan, Canada and Brazil."

"[M]inisters sought to keep plans for tough new Basel III bank capital and liquidity rules on course for implementation by the end of 2012 despite deep-seated concerns among several countries. "

"Financial Stability Board Chairman, Mario Draghi, told reporters. "We are on track to deliver the proposals at the Seoul summit in November. Ministers are fully engaged in finding the right compromises. "

"The key thing is to start the implementation in 2012. Then we will kind of find out what are the most appropriate transition times," Draghi said. "

"Draghi said two percentage points of higher capital requirements would halve the probability of systemic risk." [Non sense.]

"Draghi, who overseas implementation of the G20's financial reform pledges, said Basel was not expected to take full effect by that deadline. Several finance ministers signaled that a lengthy phase-in for Basel III beyond 2012 was now inevitable. "

EU calls for new bond rating system, after negative bond rating reviews

Credit rating agencies, the fox guarding the hen house -- conflict-of-interest to list a table of how a specifc bond stinks, not done -- listing aaa plus minus, does not say what defects specific debt holder agreements have, as each bond agreement is different -- new language needed for bond rating services
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[Credit rating agencies offer opinions; never to be taken as Gospel; multi opinions and access to these various, contradictory opinions necessary, so yes have right to regulate credit rating agencies. Modern markets can improve credit monitoring, changing the display, and allowing smaller investors to tell the story. ]

[ Credit rating agencies truth: communicating deficiency, and debt holders rights is the goal of bond rating agencies. Too long debt holders rights have been minimized, right to display what rights debt holders have is the foundation of a bond rating. Need for these basics. bond rating services need to display bondholder rights deficiencies. Better handling of bond chapter 11 filings, and improving communication of the specific irregulaties in covenants between debt holders and borrowers. and advocating bondholder rights. Aka it is not to attach a aaa rating or a failing grade, more than this. Bond rating service purpose in part is to label deficiencies for investors to see pitfalls.]

[Yes the EU has a right to access M4 and describe their bond rating system to detail the bonuses of doing so. Support more new watchdogs and alternative communication display alternatives, to monitor credit rating agencies.]




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Quote, "Mr. Barroso's commission is also planning to establish a new watchdog to monitor credit rating agencies, with the power to investigate, fine or de-license those that don't measure up, and is considering creating a European rating agency of its own. "

http://www.nationalpost.com/todays-paper/responsible+banks/3115317/story.html


http://in.reuters.com/article/idINIndia-49002320100602

Qutoe, "Credit rating agencies have been criticised for downgrading countries as the euro zone scrambled to mount a $1 trillion rescue package to restore confidence."

"Barnier said rating agencies would soon be put under the watch of a new pan-European supervisor with power to withdraw their licenses to do business if they break EU rules.

"Rating agencies will be asked in December to provide more information about how they decide the creditworthiness of countries or companies. Although they will not have to justify decisions, they must outline how they make them."

"Some European officials, frustrated with downgrades of states as the euro zone struggled to win back investors' confidence, hope this will tighten control of Moody's, Standard and Poor's and Fitch."

More information of bank tax -- worldwide levies

What is the bank tax? Local or international?
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"It’s a type of insurance,” Mr. Barroso said." "The European Union wants the upcoming G20 meeting to produce an accord that would raise billions – possibly hundreds of billions – from banks through new worldwide levies."

"Just prior to his private meeting with Mr. Harper, EU Commission President José Manuel Barroso provided a detailed briefing to Canadian reporters – at his invitation – during which he rebutted Canada’s arguments against a tax."

http://www.theglobeandmail.com/news/world/g8-g20/economy/canada-eu-at-loggerheads-over-bank-tax/article1557236/


[Bank tax on profits, or amount of business? Use the word "crisis fund", is this a world fund, or a local fund?]
http://www.newsdaily.com/stories/tre6515fl-us-eu-regulations/
Quote, "He suggested pushing forward with a levy for a crisis fund as well as either a tax on financial transactions or some other step that would pound bank profits, although he admitted this was unlikely to win global backing."

Alternative to a Bank Tax to manage a nation's currency value

Federal Reserves are buying gold. Gold is a tool that can be used to support a nation's currency in a sell off.

Issues for a nation to construct a fait/deposoit currency that is traded on international markets, so its import and export habits determine its currency price, and not bank of clearance withdrawels into foreign currency. Tools needed by a nation to protect its currency are that it needs more than its own currency, as is buying its currency. Needs foreign deposit currencys and gold.


Gold's role is expanded in the modern money supply, and how nation's federal reserve system mantains its currency values. Note a nation's federal reserve able to acces funds m4 can buy up alot of gold. Only so many bars of gold to go around. Bank of Canada could easily buy up tens of billion in gold to protect the Canadian currency. Suggest the government does so. [Not suggesting the indivual buy gold, rather that gold as a tool is an important object in M4 as it is cheap when govenemnts can create spending power through regulating their nation's bank of clearance settlements, rather than printing money, to access the money supply.

A nation without gold has a weak currency, as cannot manage bank of clearance withdrawels into foreign currencies.