On France, IMF Says Banks Have Far to Go, Of UBS, KBC, "Exports" & Noyer's Dream World

By Matthew Russell Lee

UNITED NATIONS, June 4 -- In an International Monetary Fund report embargoed until 5:45 am today, the IMF says that "French banks still have some way to go" and speaks of "limited public disclosure of financial sector data." Both are understatements.

  Take for example French fraud charges for CDO chicanery by the bank KBC, which is based in Belgium, and moves on UBS (France) for helping tax evasion, after the grilling CEO Jean-Frederic de Leusse -- then ask if the French banks didn't do the same or worse.

  France's regulators, meanwhile, remain in a dream world. Banque de France governor Christian Noyer while presenting the annual "prudential" report on May 29 bragged that "in the banking sector, the institutions have … improved their liquidity position by accumulating reserves." Many don't agree.

Even the IMF says, "Given uncertainty on the pace at which banks can move to an originate-to-distribute model, policies should focus on removing constraints on the deposit base. In this regard, the diversion of an important part of household savings toward regulated savings accounts (due to the past and planned increase in the ceiling of the livret A and thelivret de développement durable) goes against the regulatory objectives set out by the authorities. The parameters that define the distribution of the funds collected through these instruments between the Caisse des Dépôts et Consignationsand the banks could be set in a more flexible manner so as to support the adaptation of financial institutions to the new regulatory requirements. Eventually, a more thorough reform of the taxation of financial income would be desirable toward a maturity-based rather than product-based approach.

  More fundamentally the IMF says that "the structural challenge faced by France is captured by three related indicators: a declining rate of productivity growth, low profit margins, and a deteriorating export performance." 

  But France continues to neo-colonial military exports, from Mali to Niger even into the United Nations with its fourth UN Peacekeeping boss in a row, Herve Ladsous. From exports of this kind back up to shady banking practices, il y-a des problemes. Watch this site.

ABN-AMRO and ING Are Facilitators of Congo Sanctions Violations, ICC Disclosure Not Solved

Byline: Matthew Russell Lee of Inner City Press at UN
www.innercitypress.com/drc1stearns121208.html

UNITED NATIONS, December 12 -- "We're not supposed to talk about UN reform or accountability in peacekeeping operations," the head of the UN's Group of Experts on the Democratic Republic of the Congo Jason Stearns told the Press on Friday. Inner City Press asked if Stearns' Group had at least investigated the reports of top UN peacekeeper and Indian colonel praising rebel Laurent Nkunda, now accused of killed more than 100 civilians in Kiwanja. No, Stearns said, his Group's priority had been to focus on the main supporters of Nkunda's group, the CNDP. Video here, from Minute 28:18.

But if the UN does detailed investigation, shouldn't it include review of whether it or its peacekeepers are part of the problem? Apparently not.

Stearns nevertheless provided one of the more informative UN briefings in recent memory. His Group's report names the wife of Laurent Nkunda, and three banks which transferred money to her: ING, ABN-AMRO and KBC. Inner City Press asked if Stearns thought the financial transfers of these banks were appropriate. "Nkunda's wife is not on the sanctions list," Stearns said.

The same legal hair-splitting obtained when Inner City Press asked whether the interviews Stearns' Group has done will be provided to the Office of the International Criminal Court prosecutor Luis Moreno Ocampo. Most of it is public record, Stearns answered. But what about the interviews granted on condition of anonymity?

If shared with Ocampo, it seems they will have to be shared with any defense attorneys, as reflected by the ICC judges' freezing of the Congo case against Thomas Lubanga. That's up to to the ICC, Stearns said. Which makes it appear at the UN system is still in disarray in terms of how confidentiality can be promised to witnesses for information that may be shared with the ICC, requiring disclosure to defendants. Doctor, heal thyself...

Footnote: The appearance by Stearns, previously of the International Crisis Group, was a break from the usual invisibility and lack of accountability of UN Experts Groups. The Somalia Group, for example, issued a report alleging the Somalis were being trained in Lebanon, but never came to explain it. Likewise, those who came before Stearns on the DRC implied that Congolese uranium was leaking out, which others linked to Iran. Stearns disclaimed that, and criticized the BCC for implying this Group was wiretapping. Hey, Bush did it...

And see, www.innercitypress.com/drc1stearns121208.html