Tag Archives: National Politics

Ackermann Steps Down as Supervisory Chairman of Deutsche Bank

Josef Ackermann will no longer be available as a candidate for the Supervisory Board, Deutsche Bank writes in a press release. The Nomination Committee proposes Paul Achleitner as the new Chairman of the DB Supervisory Board.

“Dr. Achleitner is exceptionally knowledgeable about the banking business and the financial markets. His advice has been highly sought after and appreciated by corporate and political leaders in Germany and abroad for many years.”

Dr. Josef Ackermann

“The Chairman of the Management Board and the Group Executive Committee of Deutsche Bank AG, Dr. Josef Ackermann, notified the bank’s Supervisory Board that he will no longer be available as a candidate to transfer onto the Supervisory Board following his departure from the Management Board effective upon the completion of the General Meeting 2012,” the German bank writes in a press release.

Dr. Josef Ackermann says: “The extremely challenging conditions on the international financial markets and in the
political-regulatory environment demand my full attention as the Chairman of the bank’s Management Board. This does not allow enough scope for the many talks with individual shareholders necessary to implement the original plan.”

With regret, the Supervisory Board notes and respects this decision, the press release says.

The Nomination Committee recommends that the Supervisory Board propose Dr. Paul Achleitner, currently member of the Board of Management of Allianz S.E., for election to the Supervisory Board at the General Meeting 2012.

Furthermore, the Nomination Committee recommends that Dr. Paul Achleitner be elected at the meeting of the Supervisory Board following the General Meeting as Supervisory Board Chairman. Dr. Achleitner will be available for this office, pending the formal approval of the Supervisory Board of Allianz S.E.

Dr. Clemens Börsig, Chairman of the Supervisory Board says: “I have highly respected Dr. Achleitner for many years. He has an extraordinary level of expertise and comprehensive experience in the financial industry as well as excellent
judgment. This makes him an outstanding successor candidate to chair the Supervisory Board.”

And Mr. Ackermann respectfully replies: “Dr. Achleitner is exceptionally knowledgeable about the banking business and the financial markets. His advice has been highly sought after and appreciated by corporate and political leaders in Germany and abroad for many years.”

Well, lets’ see how appreciated they will be five to ten years from now…

Dr. Josef Ackermann will be leaving the bank’s Management Board, which he has been the Chairman of since 2002, with effect upon the completion of the General Meeting in May 2012.

The process of transition to Jürgen Fitschen and Anshu Jain will be initiated as planned at the beginning of 2012.

1 Comment

Filed under International Econnomic Politics, National Economic Politics

All Facebook Users Are Now Potential Terrorists

At least that’s the opinion of American and British authorities. While the US FBI are hunting down script kiddies who’s messing with their websites, the British police are cracking down on users of social media for allegedly encouraging a mass uprising during a time ripe with riots.

One single message on Facebook recently resulted in four years behind bars for two British citizens because of something they say was just a drunk joke.

Now human rights groups are sounding the alarm, saying the courts are over-reacting by dishing out penalties which are far too harsh.

Russia Today reports:

As if that’s not enough; we now also got a Facebook group dedicated to expose terrorist on Facebook….or should I say “Farcebook”?…

Related by the EconoTwist’s:

Comments Off on All Facebook Users Are Now Potential Terrorists

Filed under Philosophy, Technology

The Absurdity of the French-German Euro Summit

EconoTwist’s is obviously not the only blog who thinks there’s something absurd about the two top leaders of France and Germany getting together and hammer out the future of the whole European Union, and sending their orders in a five-page letter to the president of the EU Council together with an offer for the leading chair in the new economic government they’re proposing. I’m not sure what they mean by “strengthening” the economic governance, or how this is gonna solve anything. Professor George Irvin, however, have a few clarifying comments.

“In a sane world, the German Chancellor and the French President would sack their economic advisors who clearly lack an understanding of basic economics or national accounting principles. Sadly, the world is growing less sane by the day.”

George Irvin

Except for the so-called “Tobin-tax” on financial transactions, EconoTwist’s, agree on most arguments made by honorary professor George Irvin at the University of London. In his recently published post at the EUobserver.com, professor Irvin points to  one crucial fact: There is nothing in the French-German plans for a new European economic government that actually may stop the debt crisis from escalating.

Angela Merkel and Nicholas Sarkozy spent most part of yesterdays meeting mapping the future of the Euro Area (EA) and apparently came away pleased with their work, professor Irvin observes.

And continues:

The good news is that they want to move towards serious EA economic governance and seemed to have agreed on a Tobin tax as part of the deal.

The bad news is that they want all members of the EA-17 to write a ‘balanced budget’ rule into their constitution; ie, to replicate the German ‘debt brake’ (Schuldenbremse) law across the EA.

It won’t work.

The reason a generalised balanced budget rule won’t work is simple; it follows from the basic national accounting savings balances. Because (over the business cycle as a whole) the private sector normally runs a savings surplus, a government balance of zero logically entails a current account surplus.

While this may hold true for Germany, it cannot be true for all EA countries taken together.

For the EA as a whole, one country’s exports are another’s imports—for some countries (like Germany) to run a surplus, others must run a deficit.

This is not an empirical matter but follows logically from national accounting definitions; Merkel and Sarkozy are guilty of a basic fallacy of composition.

There is only one way a “balanced budget rule” might work for the EA as a whole – each EA deficit country would have to run a countervailing surplus with the non-EA world. But there are two problems here.

The first, shown in a paper by Whyte, is that there is not enough excess demand in the rest of the world to absorb the extra EA exports.

Even if there were, the resulting global trade imbalance would result over time in the EA accumulating excess reserves, much as China today.

Crucially, Mrs Merkel and Mr Sarkozy made no mention of strengthening the “bailout fund” or issuing E-bonds. The latter is vital if short-term crisis is to be avoided.

George Irvin

In a sane world, the German Chancellor and the French President would sack their economic advisors who clearly lack an understanding of basic economics or national accounting principles. Sadly, the world is growing less sane by the day.

The financial markets will know this and soon enough return to speculating against member states’ sovereign debt.

By George Irvin

George Irvin is a retired professor of economics and for many years was at ISS in The Hague. He is now honorary Professorial Research Fellow in Development Studies at the University of London, SOAS.

His blog covers contemporary economic and political issues relevant to the EU.

 

See also: Van Rompuy tipped to chair new “economic government”

Related by the EconoTwist’s:

4 Comments

Filed under International Econnomic Politics, National Economic Politics, Philosophy