I had a little wind in my sails this morning when I saw a lead article in today’s Wall Street Journal regarding the pathetic investor protection provided by the meter maids at FINRA. While sailing along and adding a little spice to the mix by commenting on that article, I then got blown away by a tsunami coming the other way.
Let’s navigate.
Not that there was ever really any doubt as to the fact that the major global banks rule the world — and will likely continue to do so — but a riveting release put out just yesterday by Wikileaks confirms this reality.
Major props to Yves Smith at Naked Capitalism for bringing attention to this press release: Secret Trade Services Agreement. The serious students in the crowd will have plenty to chew on and digest from the agreement.
For those more inclined to study from the Cliff Notes, let’s give thanks to Professor Jane Kelsey of the University of Auckland, New Zealand who brings real transparency to the proposed agreement in her Analysis Article also released by Wikileaks:Â
This memorandum provides a preliminary analysis of the leaked financial services chapter of the Trade in Services Agreement (TISA) dated 14 April 2014. It makes the following points:
1. The secrecy of negotiating documents exceeds even the Trans-Pacific Partnership Agreement (TPPA) and runs counter to moves in the World Trade Organization (WTO) towards greater openness:Â
– The cover sheet records that the draft text will not be declassified until 5 years after the TISA comes into force or the negotiations are otherwise closed.
– Secrecy during the negotiation of a binding and enforceable commercial treaty is objectionable and undemocratic, and invites poorly informed and biased decisions. Secrecy after the fact is patently designed to prevent the governments from being held accountable by their legislatures and citizens.
2. The TISA is being promoted by the same governments that installed the failed model of financial (de)regulation in the WTO and which has been blamed for helping to fuel the Global Financial Crisis (GFC).
– The leaked text shows the US and EU, which pushed financial services liberalisation in the WTO, are the most active in the financial services negotiations on TISA. The third most active participant is the renowned tax haven of Panama.
– The rules also aim to ‘discipline’ governments in favor of a light handed and self-regulatory model of financial regulation.
