Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-07-04-Speech-1-070-000"

Predicate	Value (sorted: default)
rdf:type	lpv_eu:Speech2
dcterms:Date	"2011-07-04"^^xsd:date2
dcterms:Is Part Of	lp_eu:Short selling and certain aspects of credit default swaps (debate)2
dcterms:Language	"fr"^^xsd:language2
lpv:document identification number	"en.20110704.21.1-070-000"2
lpv:hasSubsequent	lp_eu:2011-07-04-Speech-1-072-0002
lpv:speaker	lp:Robert Goebbels2
lpv:spokenAs	member; S&D (2009-07-14--2014-06-30)3 substitute; ECON (2009-07-16--2012-01-18)3 member; Special Committee on the Financial, Economic and Social Crisis (2009-10-08--2011-07-31)3 vice-chair; Delegation for relations with the countries of Southeast Asia and the Association of Southeast Asian Nations (ASEAN) (2009-09-30--2014-06-30)3 substitute; Delegation to the ACP-EU Joint Parliamentary Assembly (2009-09-16--2014-06-30)3 unknown; Parti ouvrier socialiste luxembourgeois (2009-07-14--2014-06-30)3 member; ITRE (2009-07-16--2012-01-18)3
lpv:translated text	"Mr President, I fully agree with my fellow Members Mr Canfin, Mr Lehne and Mr Ferber, because I believe that in order to prevent a new financial crisis, we need to strengthen market regulation. In particular, we need to ban all abusive practices, one particularly harmful example of which is short selling. Bear Stearns and Lehman Brothers were forced into bankruptcy by the short selling of the shares of those two paragons of Wall Street capitalism. Naked credit default swaps (CDSs) are more abusive still. Warren Buffett described them as weapons of mass destruction. In theory, a CDS is a guarantee against a possible loss on a security. Yet naked CDSs offer the possibility of insuring oneself against a risk for which one is not liable. That is toxic speculation and it endangers the real economy. Today, certain market operators are betting on the collapse of the euro area and on the default of a State. By purchasing naked CDSs on the sovereign debt of certain States, they are simply increasing the speculative pressure on the States concerned. It is strange that certain States – the United Kingdom, Italy, Spain, Romania and others – do not want naked CDSs on sovereign debt to be banned. They believe in the warnings from the markets predicting increased volatility on the sovereign debt market if naked CDSs are banned. Those governments should explain to their citizens that they prefer to give in to wild speculation rather than alienate the sacrosanct financial markets. Wolfgang Münchau, an editorial writer on the who is far from left-wing, writes the following: I quote in English: ‘A naked CDS purchase means that you take out insurance on bonds without actually owning them. It is a purely speculative gamble. There is not one social or economic benefit. Even hardened speculators agree on this point. Especially because naked CDSs constitute a large part of all CDS transactions, the case for banning them is about as a strong as that for banning bank robberies. ‘Economically, CDSs are insurance ... A universally accepted aspect of insurance regulation is that you can only insure what you actually own. Insurance is not meant as a gamble, but an instrument to allow the buyer to reduce incalculable risks. Not even the most libertarian extremist would accept that you could take out insurance on your neighbour’s house or the life of your boss.’ Therefore it is absolutely necessary that we reach an agreement with the Council, especially on banning naked CDSs."@en1
lpv:unclassifiedMetadata	"Financial Times"1
lpv:videoURI	<go to Events_and_structure europarl>2

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