It's not the vague stuff that the financial media implies with 'his past at Goldman Sachs'.It is precise allegation of perjury in connection with Goldman Sachs/GR debt controversy. There are corroborating ramifications implicating Goldman Sachs, the EU Commission, and the ECON Committee of the European Parliament, that also have gone under the radar.
Similarly, on a lesser level, the press sometimes allude to the fact that his son is a fixed income trader at Morgan Stanley. Yes, but Draghi's fault is compounded by having given false testimony during his nomination in 2011 in denying any personal conflict of interest.
#Draghi attaqué pour conflit d'intérêts. Participation au G30, ancien de Goldman Sachs, un fils chez Morgan Stanley... lesechos.fr/entreprises-se…
— isabelle couet (@icouet) July 31, 2012
The great news items of the past few weeks are connected to the above:
- The LIBOR scandal in which regulators are complicit
- The greatest extension of ECB's power since its creation through a banking union (Bloomberg)
- An extension of joint liability to bank bailouts modeled after TARP just when US Treasury Inspector General Barofsky releases a book describing it as "a badly managed program that bailed out 'fat cat' bankers at the expense of U.S. taxpayers" (Yahoo)
The Goldman/GR 'Bermuda triangle' media/NGOs won't get near to
- Draghi may have perjured himself during his nomination in 2011 about his connection to the Greek/Goldman Sachs debt fraud. Perhaps to put in relation with this, ECB has repeatedly denied Bloomberg access to internal data about the GR-Goldman swaps. Last occurence in June 2012 (ZH).
- It's not an isolated incident: Goldman Sachs VIP Gerald Corrigan, who is also a G30 member, may have given a false testimony on the issue before the European Parliament in 2010 in regards to a 2005 'significant restructuring' of the swaps arrangement with GR
- EU Commission Olli Rehn and ECON chair Sharon Bowles may have covered up by dismissing prosecution of the parties involved months before Eurostat even examined the contentious swaps
In an earlier post ECB-Watch showed that @nicholasdunbar and Marc Roche (@LeMondeFr), singled out because their coverage of Goldman/Greece benefited their career, have engaged in serious omissions (See the '2005 blindspot').
@icouet covered the CEO complaint also noting that the Greek Goldman scandal was controversial for Draghi (Echos). @HuffPostBiz calls CEO's complaint 'weird' and that's about it (HuffPo). @Spiegel says about the Goldman/GR scandal that 'Draghi denies to this day that it was aware of the controversial business.', which is a caricature (Spiegel). @corporateeurope spotted Draghi's G30 membership early:
CEO first raised concerns about #Draghi involvement in Group of 30 corporateeurope.org/publications/l… last yearThe Bermudan triangle is at the nexus of corporate and EU government wrongdoing, which is right up their alley. Why, then, haven't they also filed a complaint about his documented perjury?
— CEO (@corporateeurope) July 31, 2012
Why it is critically relevant now
Has there ever been a more critical time than now to scrutinize the ethics track record of the ECB, as LIBOR scandal unveiled and greatest expansion of ECB power since creation about to take place? No, and the fact it wasn't done during Draghi's nomination only makes the need more urgent.
Ex-TARP overseer denounces US government cover-up of Wall Street crimes wsws.org/articles/2012/…There are strong suspicions US/UK regulators covered up the LIBOR manipulation (WSWS). From the cover up of the Goldman/GR scandal we know bringing to justice perpetrators of market fraud/breaches of primary dealer duty isn't imperative of the EU Commission. In fact, it awarded an underwriting contract via EFSF to Goldman a year after the 2010 controversy.
— Neil Barofsky (@neilbarofsky) July 31, 2012
Facts are stubborn and they cast a very dark shadow over Olli Rehn's reputation (see, for instance, '2005 blindspot'). In light of the EU Commission's (in)actions, Michel Barnier's grand gesturing on criminalizing fraud in response to the LIBOR scandal rings hypocritical.
Some bright light has yet to be shed on the actions of the ECB, the EU Commission, the ECON Committee in relation to the Goldman/GR scandal. Until these actors are cleared of any wrongdoing it is insane to grant the ECB further powers and we cannot trust Barnier/Rehn to deal with the implications of LIBOR.
Thank you for your support! Our goal: no financial player, product or market should escape regulation and supervision avaaz.org/en/bankers_beh…There is a subtle connection between the Goldman/GR deal and LIBOR. The spokesman of Goldman Sachs before a Parliamentary debate intended to shed light on the problem (in reality a masquerade) is also chairman of CRMPG. He may have gaving false testament of high significance in response to a question from Eurostat head about the 2005 restructuring of the Greece's hidden debt (see '2005 blindspot). The EU Commission and Parliament looked the other way. It turns out CRMPG is cited in recent revelations about market rigging (ZH).
— Michel Barnier (@MBarnierEU) July 24, 2012
EU taxpayer a second class citizen; financiers, first class
The EU taxpayer has been on a roller coaster ride these past few years. According to the EU Commission, it has approved, to date, taxpayer funded bailoust of banks in the order of 40% of EU GDP (EU portal). The proposed banking union's pooling of deposit insurance scheme promises to expand and perpetuate this habit.
One would hope, at the very least, that the structure of banking be overhauled such as to unroot the cause of such bailouts. Barnier made this promise in 11/2011 as reported in an article titled 'Barnier panel to study break-up of EU banks' (FT). Nothing with regards to that or Glass-Steagall has filtered through the documents pertaining to the banking union, not even arguments rejecting these proposals. 
Isn't it obvious the planned banking union is designed by and primarily for the benefit of banking and finance?
Troika plan(s) will eventually bring down the Euro. Until then taxpayer gradually made insolvent to make creditors whole. #bankingunion #ESM UPDATE (significant) 06 July 2012 Is banking union endgame or not? (ECB-Watch).
— ECB-Watch (@ECB_Watch) July 27, 2012
- 05-2012 *The blind spot surrounding the '2005' restructuring of the Goldman/GR secret loan*
- 03-2012 EU rewards Goldman for GR secret loan
- 03-2012 Sham parliamentary investigations of the GR/Goldman scandal
- 03-2012 ECON MEPs hide conflict of interest
- 02-2012 The undisclosed Draghi/Morgan Stanley conflict of interest
- 02-2012 The Draghi-GR-Goldman connection whitewashed during nomination