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Daniela Gabor Profile picture
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31 Dec 20, 14 tweets, 3 min read
This is clearly missing an 'Empire of Repo' book.
Empire of Repo: monetary plumbing in the age(s) of financial globalisation.
US version, with a bit more ooomph:

Empire of Repo

The Plumbers that changed the World of Finance.
Chapter 1. Repo Wild Wild West

when the German banker Paul Warburg argued that the US financial system did ‘violence to every banking tenet held sacred in the Old World’, he referred to the US repo (then call) market.
At the end of the 19th century, NY banks lent one in every two dollars via overnight repos. Image
Anna Youngmann (1906) described this as 'financial banking' that powered leverage on the NYSE.

She could have termed it shadow banking, the mechanics were identical, and so were the main actors (JP Morgan, Citi). Image
to defend themselves against accusations that they were ruthless speculators, Repo Pioneers argued that they merely provided safe assets to a world without a central bank or deposit guarantees. Image
Chapter 2. Repos: the forgotten story of the 1929 Great Depression ImageImage
The 1933 Pecora Commission basically killed the US repo market, giving the Fed powers to regulate call market, including haircuts/rehypothecation and severly restricting market-based finance

not for long though.
Chapter 3. Repo Returns: Salomon Brothers vs the (monetarist) Federal Reserve.

A tale of intraday liquidity

ft.com/content/4da3a0…
Chapter 4. Repo seduces the Bundesbank and paves the way for 'Whatever it takes' 10 years later.

tandfonline.com/doi/abs/10.108…
Chapter 5: The end of empire? Lehman and its aftermath.
Chapter 6. The predictable failure of the Rebel Alliance*

*the Financial Stability Board, the European Commission (FTT) and some lost central bankers (Jeremy Stein)
Chapter 7. Empire strikes back (brought to you by PIMCO).

ft.com/content/c784b7…

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More from @DanielaGabor

Daniela Gabor Profile picture
2 Jan
hard to believe, but in the late 1940s, CDU, the party that gave Europe 'Schwarze null' and Schauble objected to central bank independence

instead it wanted 'an absolute coordination of policy between the central bank and the future state' (Mee 2019) Image
ahem, JC Trichet Image
The 1950 Bundesbank Law debate equated central bank independence with 'state within a state', capable of sacrificing employment for sound money. Familiar eh? Image
Read 6 tweets
Daniela Gabor Profile picture
24 Dec 20
In his Macron Doctrine, @EmmanuelMacron promised a post-colonial, post-financialisation Afro-European Axis.

Yet, @nssylla & I show, in Africa, France pushes a 'development as derisking' paradigm that financialises development & privatises public goods.

geopolitique.eu/en/2020/12/23/…
The #WallStreetConsensus is a new paradigm that frames development as a question of 'producing bankable projects' that can attract institutional investors.

Development asset classes = privatisation of social and physical infrastructure via PPPs.
But 'Development as Derisking' is not just about privatization. It rather seeks to transform the state, to reduce statecraft to derisking investments for global financiers. A bankable project is one where the state commits to put a safety net under investors.
Read 13 tweets
Daniela Gabor Profile picture
19 Dec 20
Wow we are badly governed.
We are badly governed: shit macroeconomic policies (we've maxed out the credit card), shit health policies (COVID19 is taking a Xmas break), shit Brexit (Dover truck queues) and shit climate policies (COP26 greenwashing coming your way next year)
And for those who can't do sarcasm at this joyful juncture, no there is no credit card except in the warped minds of the clowns in power
Read 5 tweets
Daniela Gabor Profile picture
17 Dec 20
how did I miss this - Blackrock, advisor to the European Commission on greening European banks, holds 20% in FTI - a US lobby firm for fossil fuels, with some seriously aggressive tactics.
oh hello today's 'greenwashing, an ESG love-story' Image
'the world is marvellous, Blackrock edition':

you design an ESG framework for your friends at the Independent Petroleum Association, and then you use it to advise the European Commission on ESG-ing European banks.
Read 4 tweets
Daniela Gabor Profile picture
17 Dec 20
morning wow moment: Uruguay of Mujica and Tabare Vazquez, utopia of the leftists disappointed with Nicaragua and Venezuela, was a staunch promoter of PPPs in health, education, prisons, roads ImageImage
fascinating, a 'left PPP' framework:

1. ceiling on state risk-proofing private investors (no all you can have demand derisking we see in African countries.)

direct and contingent transfers to private sector below 7% GDP, yearly compensation below 0.5% GDP. Image
2. Accountability mechanism: fiscal transfers to PPP operators and investors must be reported to Parliament.
Read 4 tweets
Daniela Gabor Profile picture
25 Nov 20
imagine you're a powerful hedge fund owner, powerful enough to count a Chancellor of the Exchequer as former employee.
But your daily job of counting the billions is not fullfilling enough.
you want to do good.
not by moving your hedge fund from an offshore haven so you pay proper taxes, but by helping those in need, your way.
Philanthropy, you believe, is far more effective than government interventions, because you have control over it.
so you set up a hedge fund that doubles down as NGO in the Global South.
you choose your target underprivileged group carefully, those glossy brochures need the right smiles to melt down philanthropic hearts.
Read 9 tweets

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