London & Crown's overseas tax havens as world financial nexus of crooked capital

[MarkiB]

Alongside the right to housing and land is the right to livelihood
(habitat?), hence why I forwarded this to this email list.

Understand why the Financial City of London remains a major roadblock to much needed urgent reform of the world financial system, despite much talk of urgently needed reform immediately after the world financial crash in 2008:


[ btw - NATO zone 'Sons Of Moriah' financial terrorists & war profiteers known as Bilderberg will be gathering this year for their annual meeting at the resort city of St. Moritz, in southeastern Switzerland, June 9-12. (ed. (Tony))
http://www.americanfreepress.net/html/bilderberg_in_switzerland_262.html ]


UK holding back progress on global financial stability, says the New
Economics Foundation

29 March 2011
Ref:
http://www.neweconomics.org/press-releases/uk-holding-back-progress-on-global-financial-stability-says-nef

We are told the UK cannot act alone on financial reform, and that other
nations stand in the way of global financial stability. But, a new report
says different.

The new report by think-tank the New Economics Foundation entitled
"Subverting Safer Finance" reveals that the UK is holding back urgently
needed regulation in areas ranging from: potentially damaging speculation
in food, energy and minerals, to the Alternative Investment Market, ‘naked
short-selling’ and the operations of British tax havens.

How the UK holds back global financial regulation

This report argues that the UK is subverting progress towards a safer
financial system, and has become a major barrier to international efforts
for reform. The report, 'Subverting Safer Finance' by NEF reveals that
compared with other major financial centres, including even the US, the UK
is part of the problem in key areas of financial reform, rather than
leading the search for solutions.

“In the UK, we are presented with the idea that we cannot act alone on
financial reform and other nations stand in the way of global financial
stability. We ask whether the reverse might be the case, and the UK itself
is a ‘haven’ that threatens the stability of the global economy. We call
for the UK to live up to its image as a pre-eminent global financial centre
and demonstrate strong international leadership on better regulation
instead of pandering to vested financial interests.” says Tony Greenham,
head of Finance and Business at NEF.

In areas including potentially damaging commodity speculation, the
Alternative Investment Market, naked short-selling and the operations of
British tax havens, the UK is holding back urgently needed regulation.
Subverting Safer Finance finds that:

-  London is a major centre for commodity trading, yet instead of
demonstrating leadership, the UK is lagging ever further behind the US.*
And while the EU is trying to support global regulation by raising
standards towards those of US legislation, the UK’s response is to block
any attempt at reform.
- A London exchange called the Alternative Investment Market (AIM), has
pursued a strategy of winning new business by driving down standards of
transparency, governance and investor protection.
-  The US banned naked short-selling (a form of trading that many argue
increases market volatility and instability) in 2008. The European
Parliament is seeking to impose an EU-wide ban on naked short-selling. But,
the UK government is trying to derail this initiative.
-  While the UK claims it cannot influence tax havens, many of which
territories are in fact UK Crown Dependencies or Overseas Territories, a
past history of intervention suggests otherwise. An HM Treasury review
confirms that the UK has reserve powers enshrined in the constitutions of
the Overseas Territories to affect and block legislation. The UK also has
the power to intervene to uphold ‘good governance’ in the Crown
Dependencies. This means that in several cases the UK is actively choosing
to not tackle tax havens.

 * The US banned naked short-selling (a form of trading that many argue
increases market volatility and instability) in 2008. The European
Parliament is seeking to impose an EU-wide ban on naked short-selling. But,
the UK government is currently trying to derail this initiative.

London and the Crown's overseas tax havens - world financial nexus of
crooked capital:

    * In several cases the UK is actively choosing to not tackle tax
havens. While the UK claims it cannot influence tax havens, many are UK
Crown Dependencies or Overseas Territories, where a past history of
intervention suggests otherwise. HM Treasury confirms that the UK has
reserve powers enshrined in the constitutions of the Overseas Territories
to affect and block legislation. The UK also has the power to intervene to
uphold ‘good governance’ in the Crown Dependencies.
    * London is a major centre for trading in commodities, including food,
yet instead of helping ensure that these vital markets operate in a fair
and orderly manner, the UK is lagging ever further behind the US, and
blocking EU attempts at reform.
    * A London exchange called the Alternative Investment Market (AIM),
has pursued a strategy of securing new business by driving down standards
of transparency, governance and investor protection.



In order for the UK to demonstrate that it wants a to deliver a safer
financial system, NEF believe the minimum necessary actions include:

- Bringing standards up to US levels by introducing position limits on
speculators in commodity markets and creating a UK equivalent of the US
Commodities Futures Trading Commission.
- Eliminating tax havens that are under UK control, and work with the US,
the EU and other international authorities to co-ordinate regulation of
global tax evasion and avoidance.
-  Banning naked short-selling to bring the UK into line with the US,
Japan, Hong Kong, India and Australia.

“Pushing soft-touch regulation as good for an ailing economy is like
doping a horse that is already sick from taking too many drugs. It isn’t
going to work and will probably make matters worse. If the government wants
a safe and stable financial system it should stop the UK dragging down
international efforts toward financial reform. If it doesn’t we are in
danger of being seen by our neighbours as a financial rogue state,
subverting safer finance,” says Andrew Simms, nef fellow and a co-author of
the report.

”The UK exerts a downward pressure on the quality of financial regulation
in a range of ways. These findings contrast starkly with the dangers of
Britain ‘acting unilaterally’ that are frequently voiced by the banking
lobby in response to even the slightest hint of real reform. London can and
should compete on the quality of its services, not on the laxness of its
regulation and its tolerance of market abuse.” says Lydia Prieg, a nef
researcher and a co-author of the report.

In order for the UK to demonstrate that it wants to deliver a safer
financial system, NEFcalls for a range of minimum necessary actions to be
implemented immediately which include:

    * Commodity speculation: Bring standards up to US levels by
introducing position limits on speculators in commodity markets and create
a UK equivalent of the US Commodities Futures Trading Commission.
    * Tax havens: Eliminate tax havens that are under UK control, and work
with the US, the EU and other international authorities to co-ordinate
regulation of global tax evasion and avoidance.
    * Naked short-selling: Ban naked short-selling to bring the UK into
line with the US, Japan, Hong Kong, India and Australia.

The risk is that by engaging in a race-to-the-bottom on financial reform,
the UK undermines global financial stability with potentially devastating
consequences for the global economy.

Ann Pettifor, nef fellow and Director of PRIME says: "Last week the
Chancellor argued in his Budget statement for the City of London to be a
'leading financial centre' and for Britain to lead in "advanced
manufacturing, life sciences, creative industries..(and) green energy.” The
two are incompatible. The City of London's interests conflict with those of
industry. Unlike industry, the City enjoys massive taxpayer-backed
subsidies and protection. By refusing to reform the City, the government is
condemning industry to a prolonged drought of lending and to high borrowing
costs - not just in the UK, but around the world. We must return bankers to
their role as servants of industry and society - not masters."

Neal Lawson, Chair of democratic pressure group, COMPASS says: “The
British government seems eager to return to business as usual when it comes
to City excesses. The lesson of the crash is that finance has to be saved
from itself at a global level – our government seems to want to hinder this
process rather than help it.”

John Christensen, Director, Tax Justice Network says: "By placing the
special interests of the City of London and its offshore tax haven
satellites ahead of public interest, the government threatens future
prosperity and stability around the world. Britain cannot continue to duck
its responsibility to effectively regulate its offshore financial sector."

Richard Murphy, director of Tax Research UK says: "The UK has a sorry
record on tax havens. It does not demand transparency and accountability of
the great many for which it approves legislation. Nor does it demand that
they comply in full with regulation such as the European Union Savings Tax
Directive. Worse, the current government is actively opposing adoption of
measures such as country-by-country reporting for all multinational
corporations that would reveal just how much they hide in the world's tax
havens. Maybe that's because their latest corporation tax initiatives
actively encourage UK based companies to hide their profits in those
places. If, however, it's going to solve the deficit this will have to
change. You can't balance the books when some of the cash is hidden from
view and sometime soon the UK will have to realise that reform is
essential."

Julian Oram, Head of Campaigns at the World Development Movement says:
“The UK is one of the main hubs for financial speculation on commodities.
This is pushing up the price of food and fuel for people everywhere, and
causing hunger and political unrest in the world’s poorest countries. The
government needs to stop protecting the interests of a handful of
super-rich traders and start doing what’s right for the good of all.”