Today we have woken up with more than disturbing news and it is the following: Europe or to be more exact the European Commission, from which Don Joaquín Almunia is the European Commissioner for Economic and Monetary Affairs, has fined more than 1,700 million Euros to several European financial entities for dealing with the Euribor, luckily no Spanish entity has appeared in the photo, because with which it is falling with the crisis and the level of indebtedness of ordinary Spaniards, especially derived from loans loans, there could be riots in the streets and I think I am not exaggerating.
The entities that have been fined are: RP Martin, JP Morgan, Deutsche Bank, Royal Banks of Scotland and Citigroup, these entities together with Barclays and UBS, formed a group of criminals that intervened in the prices of the Euribor and other indices of references to earn more dough with derivatives, the last two entities that I have mentioned have not been fined since they were the ones that gave the tip of all this financial party.
The Spanish banks have not been, for the time being, mentioned in this news, our banks are more of domestic financial businesses, than of wholesale banking business of derivatives and various inventions of aesthetic surgery or plastic surgery after all what What these sanctioned banks did was to agree not to compete in the financial market, now the demands of those affected throughout Europe will begin since these reference indices are somewhat obscure mathematical inventions and designed so that the bank always wins.
The Euribor or one-year interbank reference index, is the index used in Spain for mortgage loans ahead of others such as LIBOR or IRPH, and consists of an arithmetic mean of the interest rates at which they are lent. the banks among them, there is a European entity that is in charge of making said average with the data provided by the different financial entities, not only European but global, that provide their data, namely the data they send so that they can carry out this type of practice .
These events happen because it is not regulated like other sectors if it were regulated and controlled as the finance data did not pass these financial crimes. Ultimately, what the sanctioned entities have done is associate themselves so as not to compete and thus maximize their benefits even more, with these typical financial engineering products such as derivatives, which, after all, are financial contracts that their trading market has.
The most serious thing is that we may have been paying interest above the real average, all Spaniards who have mortgages referenced to the Euribor, without being able to determine how much they have cleaned us with these practices, it may be that they were sending data to calculate the average by above the reais, what Europe has done with this accusation is to open the ban on lawsuits that can be filed throughout Europe, especially by associations of users of financial institutions or by private clients, including SMEs that want to report abusive practices in their loan contracts.
According to some consumer organizations in the financial sector, the banks have been scamming us with this Euribor invention, since the supposed average with which they calculate this index has not been calculated because since the crisis began about five years ago, they have not There have been transactions between the banks since they did not trust each other, therefore there was no data to calculate said index.
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