Financial Transparency Coalition

This post originally appeared on the blog of Tax Justice Network, a Coordinating Committee member of the Financial Transparency Coalition.  If there’s one story you read today make it this one, from Politico Magazine. It’s triggered by the crisis in Ukraine, but it’s been a long time coming. The point of this short story is clear:

If you only read one thing today, this article should be it. Nicholas Shaxson, author of Treasure Islands and member of Task Force member Task Justice Network, published his stirring, mammoth article on the City of London in Vanity Fair today. London is not only a major nexus of global finance, but also one of the central points in the global shadow financial system, where criminals, corrupt public officials, and tax evaders eventually plant their hidden wealth.

Take a look at this article in Foreign Policy magazine, arguing that Goldman Sachs helped create, and profit hugely from, vast speculative markets in grain and other agricultural commodities, causing food prices to rise, with terrible effects. Goldman, it seems, helped turn a commodity derivatives market worth a sleepy $13 billion in 2000 into a half-trillion-plus market inside eight years. It continued:

"Today, bankers and traders sit at the top of the food chain -- the carnivores of the system, devouring everyone and everything below. Near the bottom toils the farmer. . ....

The City regulator will put less emphasis on maintaining London’s competitiveness in relation to other financial centres, its head said on Tuesday, in a striking acknowledgement that the approach had undermined the stability of the financial system.