The Great Debate UK

Is the U.S. picking on our banks?

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By Kathleen Brooks. The opinions expressed are her own.

Standard Chartered is the latest UK-based bank that seems to be getting it in the neck from our friends across the water. Firstly, there was Barclays and the Libor scandal, then there was HSBC which was fined for allowing drug-trafficked money from Mexico to go through its system and now there is Standard Chartered which is charged with “wilfully misleading” the New York Department of Financial Services and clearing $250 billion of Iranian transactions through its U.S. operation.

Two can be a coincidence, but three in as many months? Since the news on Standard Chartered broke there has been a torrent of investors, politicians and even some in the media who have queried whether this is just an attempt by Washington to discredit London and re-establish New York as the world’s financial centre.

There are three reasons why I don’t think this is so. Yes, the Standard Chartered case in particular, is sensationalist to say the least. The newly established New York Department of Financial Services and its head, Benjamin Lawsky, are trying to make a name for themselves on the world stage with this case. However, the recent attacks against some UK banks suggest that regulation is on the increase in the U.S. and financial services are in the firing line. This isn’t just going to affect UK banks, but also domestic bank and other foreign financial institutions with operations in the U.S. This is my first point. Not only do banks and other financial companies have to deal with the Dodd Frank legislation, they also have to deal with a whole new regulator based in New York, the beating heart of the U.S.’s financial sector.

Whether or not you agree that a bank should be able to do business with whoever they like (and not be dictated to by the U.S.), more regulation tends to mean higher costs, and in the current environment when it is hard enough to make money some banks may choose not to relocate from London or elsewhere and move to New York if they think the regulatory burden there is growing or going to cost them money in the future.

from MacroScope:

Is U.S. economic patriotism hurting?

Any Americans believing that their country is being bought up by the Chinese might want to pay heed to a new report from the Vale Columbia Center on Sustainable International Investment. It says that China is a minimal player in terms of foreign direct investment in the United States and that Washington should in fact be doing a lot  more to get it to gear up its buying.

To start with, look at the magic number.  In 2010, the last year for which numbers are available, only 0.25 percent of FDI into the Untied States came from China.  Switzerland, Britain,  Japan, France, Germany, Luxembourg, the Netherlands,  Canada were all far bigger. In the U.S. Department of Commerce's report on the year, China, numbers were so small they were lumped into a category simply called  "others".

from The Great Debate:

America still needs to engage the world

This is a response to Nader Mousavizadeh's latest Reuters column,  "A smaller America could be a stronger America."

By David Miliband
The opinions expressed are his own.

Nader’s statistics pointedly and appropriately speak to a dysfunctional political dynamic of short term promises without long term responsibilities in the U.S.  It is also striking (and worrying) that both sides of American political debate are determined to persuade voters that they won’t be too concerned by the rest of the world.

from Pakistan: Now or Never?:

The “sound and fury” of U.S.-Pakistan ties

rayjmonddavisphotoWith the release of CIA contractor Raymond Davis, the United States and Pakistan have put behind them one of the more public rows of their up-and-down relationship.  It was probably not the worst row -- remember the furore over a raid by U.S. ground troops in Angor Adda in Waziristan in 2008, itself preceded  by a deluge of leaks to the U.S. media about the alleged duplicity of Pakistan's Inter-Services Intelligence (ISI) agency in its dealings on Afghanistan.

But it was certainly one which by its very nature was guaranteed to get the most attention - an American who shot dead two Pakistanis in what he said was an act of self-defence, denied diplomatic immunity and ultimately released only after the payment of blood money. Adding to the drama were two intelligence agencies battling behind the scenes.

from Pakistan: Now or Never?:

U.S.-Pakistan relations better than they look

raymond davisGiven the high-decibel volume of the row over Raymond Davis, the CIA contractor who shot dead two Pakistanis in Lahore in January, it would be tempting to assume that overall relations between Pakistan and the United States are the worst they have been in years.

At a strategic level, however, there's actually rather greater convergence of views than there has been for a very long time.

from Global News Journal:

UNsensational? Five more years of Ban Ki-moon

U.S. Senators Joseph Lieberman and John Kerry look on as U.N. chief Ban Ki-moon addresses reporters in Washington. REUTERS/Molley Riley

U.S. Senators Joe Lieberman and John Kerry look on as U.N. chief Ban Ki-moon addresses reporters in Washington. REUTERS/Molley Riley

It's hard to find a delegate to the United Nations who despises U.N. Secretary-General Ban Ki-moon. But it's even harder to find someone who thinks he has the gravitas and charisma of his Nobel Peace Prize-winning predecessor Kofi Annan, who invoked the wrath of the previous U.S. administration when he called the 2003 invasion of Iraq "illegal." As one senior Western official, who declined to be identified, said about Ban: "It's not as if he's lightning in a bottle, but we can live with him."

from Pakistan: Now or Never?:

Afghanistan: Petraeus, personalities and policy

chinook2Buried in the Washington Post story on Marc Grossman taking over as the new U.S. envoy for Afghanistan and Pakistan are some interesting references to the possible departure of U.S. commander General David Petraeus.

"... virtually the entire U.S. civilian and military leadership in Afghanistan is expected to leave in the coming months, including Ambassador Karl Eikenberry and the embassy's other four most senior officials, Gen. David H. Petraeus, commander of the U.S.-led international coalition, and Lt. Gen. David Rodriguez, who runs day-to-day military operations there," it says.

from Pakistan: Now or Never?:

Separating the Taliban from al Qaeda

strong chopperThe Afghan Taliban would be ready to break with al Qaeda in order to reach a negotiated settlement to the Afghan war, and to ensure Afghanistan is not used as a base for international terrorism, according to a report by Kandahar-based researchers Alex Strick van Linschoten and Felix Kuehn, released by New York University.

It says that the relationship between the Taliban and al Qaeda was strained both before and after the September 11 2001 attacks, partly because of their very different ideological roots. Al Qaeda grew out of militant Islamism in the Middle East, notably in Egypt, which -- when fused with the war against the Soviets in Afghanistan -- created its own view of global jihad. Taliban leaders grew up in rural southern Afghanistan, isolated from world events. Many were too young to play a big role in the Afghan jihad, and had no close ties to al Qaeda until after they took power in 1996.

from Pakistan: Now or Never?:

Army, Allah and America: on Pakistani pitfalls and the future of Egypt

egyptAll countries are unique and comparing two of the world's most populous Muslim countries, Egypt and Pakistan, is as risky as comparing Britain to France at the time of the French Revolution. But many of the challenges likely to confront Egypt as it emerges from the mass protests against the 30-year-rule of President Hosni Mubarak are similar to those Pakistan has faced in the past, and provide at least a guide on what questions need to be addressed.  In Pakistan, they are often summarised as the three A's -- Army, Allah and America.

Both have powerful armies which are seen as the backbone of the country; both have to work out how to accommodate political Islam with democracy, both are allies of America, yet with people who resent American power in propping up unpopular elites.

What WikiLeaks reveals about the changing map of global power

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-Andrew Hammond is a Director at ReputationInc. The opinions expressed are his own-

The WikiLeaks release last month of around a quarter of a million classified U.S. State Department documents has, by critics, been variously characterised as the “September 11 of world diplomacy” (Italian Foreign Minister Franco Frattini); an “attack on the international community” (U.S. Secretary of State Hilary Clinton); and a threat to “democratic sovereignty and authority” (French Government Spokesman Francois Baroin).

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