DutchNews.nl - 'Buffer needed between banks and Bos'

Christian Democrat, Labour and Liberal MPs want the government to set up an intermediary body between finance minister Wouter Bos and financial service companies, such as ABN Amro, in which the state has a stake, the Financieele Dagblad reports on Wednesday.

It is important that Bos does not appear to be both bank manager and finance minsiter at the same time and he should not be held liable for 'every little move' made by the banks, the MPs said.

'That is not in the companies' interests,' CDA finance spokesman Frans de Nerée told the paper.

The general audit office has already warned the government of these risks, the FD points out.

'We want a buffer when it comes to exercising shareholders' rights, investments and managing supervisory board members who are acting on the government's behalf,' the MP said.

Bos is expected to tell MPs how he plans to deal with his banking role as early as next week.

The minister has already said there are both advantages and disadvantages with setting up an independent foundation. In particular, an intermediary would change the way he reported on the banks to MPs, Bos has said.

Labour MP Paul Tang told the paper he wants to make sure that banks which have been bailed out with government money keep to new guidelines on executive pay and bonuses.

'I still have my doubts about whether banks have leart their lessons or should we take the risk that they are [still] gambling with other people's money?' he said.

The present Finance Minister has now decided to relieve and delegate his professional responsibilities of managing nationalized assets and banks onto a non-elected buffer zone third party, and so if in the event the poor performing banks are resold at a considerable loss in the near future, then its obvious that, no responsibility will be acknowledged by the present finance minister for any wrong doing. Give me all the credit and not blame for complicated jobs which have been conveniently delegated to non-elected buffer zone third party.
Printing more easy money, to pay-off the nationalization of the banking sector, with the inevitable risk of devaluation and or inflation of the common subsidized currency the euro (which in turn will effect the mass public taxpayers and not the law-makers/administrators/officials because their wellbeing, financial needs and easy bureaucratic life-time jobs are secured by the government civil service, all at the expense of public Taxpayers).
Its in the public interest to clarify the point of who owns what ? Does the Bank own the Tax Payers fund and as a result are asking for an open cheque book ? Do Tax Payers or shareholders own the Bank ? What have the banks done for the public taxpayers and society (however the profit dividends are normally awarded to shareholders who in turn, are borrowing easy substantial loans from public tax fund with the approval of Finance ministry/Tax office, to postpone bankruptcy) ? There are urgent requirements which have to be addressed for the sake of the public taxpayers, financial/banking industry and government civil service :-
(1) The Taxpayers should focus on recovering the public debt lent to the Banks in the near future. (2) The Banks should be restructured, regulated independently, and there should be no bonuses rewarded to Bank managers and fund advisor, until the economy is back on track. (3) Remind yourself and don’t forget that public tax payers fund has been used to prop up these failing and bankrupt international banks, and as a result the country as a whole is carrying forward the public debt onto next two generations (i.e. burdening our innocent grand children and into the vicious circle of limited ability of paying interest on debt and not the elimination of original debt, has already began). (4) Nationalizing the Banking service under the administration of the Tax Office which in turn, inevitably lead to double taxing policies. (5) The existing independent financial regulatory body is professionally incompetent, and as a result the banking sector is near-bankrupt and is being propped up by public taxpayers fund. There is an urgent requirement for this body in question to be also restructured, given due executive power and common sense control for monitoring the financial sector.
The decision by the Finance Minister, for misguided allocation of a large proportion of public Taxpayers fund and from printing more easy money (which has been stacked against and in order to secure future risks to guarantee unforeseen future insurance claims, unexpected bankruptcies of partly nationalized banks and insurance companies, buying back the third party private toxic loans, righting-off bad banking decisions, speculative sunk costs and balancing the account books for the share holders in order to reflect imaginary profits for the tax office), is out of order.

By Small Brother | June 24, 2009 11:31 AM