What Did Draghi Know About Potential Loss and Abuses at Italy's Largest Bank

Apparently lax and/or incompetent regulation of systemically important banks by bureaucrats, central bankers, and politicians may not be just a recent American phenomenon.

As we read this, it could imperil the soundness of the financial system in Europe as well, as is still apparently the case with The Banks in the states, despite assurances to the contrary.

My understanding is that there was little to no coverage of this bank whistleblower's testimony in the US, a video of which is included below.

Golem XIV asks some very good questions in the article below, recently posted on his blog here.

Whistleblowers Testify in EU Parliament

By Golem XIV on November 17, 2016 in latest

Yesterday a very high-powered panel of international banking whistleblowers met and told their stories in the European parliament.  The questions raised were important. Among them was the Irish Whistleblower, Jonathan Sugarman, who when UniCredit Ireland was breaking the law in very serious ways reported it to the Irish regulator.

He related how he was not only ignored by his bank, the Irish regulator but also all the major political parties.   He then pointed out that the Irish regulator claims that it always – and it is the law after all –  informs the regulator of the home country of banks which have subsidiaries in Ireland, about any serious problems.

In the case of UniCredit that would mean the Italian Central bank would have been told that Italy’s largest Bank was in serious breach of Irish law in ways that could endanger the whole banking system. The head of the Italian Central Bank at the time was a certain Mr Mario Draghi.

Mr Sugarman suggested Mr Draghi should be asked point-blank of he did or if he did not know. If he did not then the Irish regulator was at least incompetent, and may have lied, misled  and perhaps even broken Irish laws. If he was told and did know, then Mr Draghi has serious questions to answer regarding his own dereliction of duty.

Surely not I hear you say.  Well perhaps someone might ask him? Or is he above the law?

http://www.guengl.eu/news/article/whistleblower-protection-what-must-be-done

Related: Studies Show Fed Stress Tests Merely 'a Placebo'

Gold Daily and Silver Weekly Charts - A Metals Tap Off Yellen and Mexico

Gold and silver took a hit around noon EST as Mexico's Central Bank raised its interest rate by 50 bp, and Fed Chair Yellen said she sees a rate increase in our own future.

Nothing about either of those two events was unexpected. The Mexican CB wants to fight the peso weakness for their own reasons, and the Fed has been keen on raising rates for their own policy purposes for quite some time.

Part of their excuse for doing so will be the Trump tax cuts for the wealthy and corporations, and the fiscal stimulus package on infrastructure that he has promised.

All of this will be justified by 'dynamic modeling' which will assume that tax cuts and fiscal stimulus will pay for themselves with increased GDP.

Where have we heard this before?

Well, I am keeping an open mind. But I have a very bad feeling about all of this.

Of course, when you are picking between two evils, what else might you expect?

The speculation of who will staff what Cabinet positions under The Donald continues to be in a bull market, with the emphasis on 'bull.' So far just about any Republican with an even number of arms and legs seems to be in the running. I think he is just playing nice with the denizens of the swamp for now.

Tomorrow is a stock option expiration.

Next Tuesday the 22nd is a key Comex option expiration.

Need I say more?

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Onward and Upward

Every thing is going to be wonderful, and all of our problems will be solved, because The Donald has taken the tiller.

I am keeping an open mind. It is not easy. It takes an act of will.

Stocks were rallying to new highs with the US dollar, which matched its prior high of the last several years.

Have a pleasant evening.