Anybody who thinks central bankers don’t dole out tips to favored financial insiders—mostly at investment banks that give central bankers huge speakers’ fees and lucrative jobs after they leave central banking—has led a sheltered life indeed. From Don Quijones at wolfstreet.com:
Cozy relations between central bankers and financial firms get unwanted attention.
ECB President Mario Draghi wields more power than just about any other public official in Europe, perhaps even including Angela Merkel. The organization he heads not only controls the monetary policy levers of the entire Eurozone, it also supervises the region’s 130 biggest banks. As we’ve seen in recent weeks, it even has the power to decide which of Europe’s struggling banks get to live and which don’t.
Yet it is answerable to virtually no one. Until now.
Emily O‘Reilly, the EU Ombudsman, an arbiter for the public’s complaints about EU-institutions, has just sent Draghi a letter asking him to explain his role in the potentially compromising Group of Thirty (G30) and how he makes sure that he does not divulge insider information or runs into conflicts of interest. The tenor, tone and direction of O’Reilly’s inquiries make it clear that she means business.
The Washington-based G30 was founded in the late seventies at the initiative of the Rockefeller Foundation, which also provided start-up funding for the organization. Its current membershipreads like a Who’s Who of the world of global finance. It includes current and former central bankers, many of whom now work or worked in the past for major financial corporations, such as:
- Mario Draghi (ECB, Bank of Italy, Goldman Sachs)
- Ben Bernanke (former Chairman of the Federal Reserve)
- William Dudley (New York Fed, Goldman Sachs)
- Timothy Geithner (Warburg Pincus, former US Treasury Secretary, New York Fed)
- Mark Carney (Bank of England, Bank of Canada, Goldman Sachs)
- Axel Weber (UBS, ECB, Bundesbank)
- Haruhiko Kuroda (Bank of Japan)
- Christian Noyer (Bank for International Settlements, Bank of France)
- Jaime Caruana (Bank for International Settlements)
- Jacob Frenkel (JP Morgan Chase, Bank of Israel)
- Philipp Hildebrand (BlackRock, Swiss National Bank)
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