Wednesday, October 5, 2016

Peer Steinbrück hires at ING-Diba – business week

The former German Federal Finance Minister Peer Steinbrück has taken a week before his departure from the Bundestag. Now it became known: in the Future, he will work for the biggest German direct Bank ING-Diba.

The former Federal Finance Minister and SPD candidate for Chancellor, Peer Steinbrück changes in the banking industry. “I’m going to accept an offer of the ING-Diba, as Advisor to the Board,” says Steinbrück, the “time”. His time as a Minister, I had completed seven years, he could not identify any conflict of interest.

Legally there is no problem: The waiting period for former members of the government, the change in the economy, is only one and a half years. At this time, the Federal government can say to the new employment.

Steinbrück had announced in the summer, in advance of the Bundestag to resign, and last week his farewell speech in Parliament. He justified the step, he could not help his party in the Bundestag election campaign with his self-imposed restraint.

steinbrück’s proposals for the taming of financial markets (2012)

  • OTC

    financial futures contracts (derivatives), which can be completely unwound in an uncontrolled manner in the stock market over, should be greatly restricted. Such Over-the-Counter transactions (OTC – “over the counter”) to take for some time now, solid.

  • raw materials

    limit the absolute number of commodity futures contracts for speculative purposes (so-called position limits). Ban on transactions with Agricultural and energy raw materials and food products for banks and financial companies.

  • sales

    is empty, expanded since 2010, the ban on uncovered short sales on shares and sovereign bonds to credit derivatives by banks and companies.

  • Computer-high-frequency trading

    Only previously reviewed companies may be operating on the exchange. Necessary for a Minimum period, until a contract is executed.

  • financial transaction tax

    to also be foreign subsidiaries of European banks. Similarly, the non-European trading in the securities of issuers from Europe.

  • real estate

    To avoid bubbles is to have brought into Europe for the loan-to-value for an upper limit of 80 per cent to the price of the property and to equity, are agreed in Boom-phases of 60 percent.

  • risk of liability

    The state should withdraw from the liability for the banks to a great extent. The Institute is intended to build up Europe from its own resources, a reserve in the amount of 150 to 200 billion. This “banking ESM” to big to handle banks or restructure. For small and medium-sized banks, a national Fund should be responsible. The shareholders and creditors are involved, in addition to the owners of the losses.

  • separation of commercial and investment banking

    First of all, to the proprietary trading of banks is limited. This refers to transactions conducted in the short-term profit on their own account. In a second step, the separation of Deposit – taking and lending from investment part is planned. Continuation of the areas under the umbrella of a Holding company as a legally independent subsidiaries.

  • regional banks

    your number should be reduced from ten to two to three powerful institutions.

  • shadow banking

    For Hedge funds, Private Equity, special purpose vehicles or money market Fund to the same equity rules should apply as for banks. Prohibition of lending to such Finance companies, and the participation of banks.

  • supervision

    Argues for a European banking supervision only for system-relevant large banks under the umbrella of the ECB. German savings and cooperative banks should not be affected.

  • allowances and bonuses

    All the Top earners (not just the Executive Committee) of a Bank are to publish their income. The performance-based surcharges shall not exceed the fixed salary.

The social Democrat sees it in his own words, no contradiction to his earlier criticism of banks, because Europe’s Bank ING-Diba “very conservative and risk-averse” is largest direct. Steinbrück comes from a banker family, one of his ancestors co-founded the Deutsche Bank. In the headlines, he was, among other things, because he got to Talk about high salaries.

Only recently has beaten the exchange of a politician in the banking industry high waves: The former President of the Commission José Manuel Barroso went after only two years as a consultant to investment Bank Goldman Sachs. The President of the EU Parliament Martin Schulz (SPD), had described as “totally unacceptable”.


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