The substantive rules target what the financial services industry sees as obstacles to its seamless global operations, including:
1. limits on the size of financial institutions (too big to fail);
2. restrictions on activities (eg deposit taking banks that also trade on their own account);
3. requiring foreign investment through subsidiaries (regulated by the host) rather than branches (regulated from their parent state);
4. requiring that financial data is held onshore;
5. limits on funds transfers for cross-border transactions (e-finance);
6. authorisation of cross-border providers;
7. state monopolies on pension funds or disaster insurance;
8. disclosure requirements on offshore operations in tax havens;
9. certain transactions must be conducted through public exchanges, rather than invisible . over-the counter operations;
10. approval for sale of ‘innovative’ (potentially toxic) financial products;
11. regulation of credit rating agencies or financial advisers;
12. controls on hot money inflows and outflows of capital;
13. requirements that a majority of directors are locally domiciled;
14. authorisation and regulation of hedge funds; etc….
While our Bankster Prime Minister is off gallivanting with Obama after having met the Chair of the New York Federal Reserve, The US secretary of Defense and other assorted big wigs telling him to pusch through the TPPA here is something else being organized under the radar.
Wikileaks published an April draft of a critical section of pending “trade” deal called the Trade in Services Agreement, which is being negotiated among 50 countries, including the US, the member nations of the EU, Australia, Canada, Chile, Costa Rica, Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Panama, Peru, South Korea, and Switzerland. TISA would liberalize, as in reduce the ability of nations to regulate, a large range of services.
The document that Wikileaks exposed on Thursday is a portion of the financial services section. It is clearly designed to serve the pet interests of big international players. This agreement is designed to institutionalize the current level of deregulation as a baseline and facilitate the introduction of new products, further ease the movement of funds, data, and key personnel, and facilitate cross-border acquisitions and other forms of market entry.