EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

05.26.18

Saint-Germain’s Poisonous Legacy of “Toxic Loans”: Quo Vadis EPO?

Posted in Europe, Finance, Patents at 5:33 pm by Dr. Roy Schestowitz

Take the money and run!

Summary: In spite of the SIDRU “toxic loans” scandal in St. Germain-en-Laye, where Battistelli is Deputy Mayor, the EPO’s Administrative Council repeats similar mistakes with opposition only from one country — the only country that actually bothered to study the matter before voting on it

It is generally known that the soon-to-depart (to be replaced by António Campinos) EPO “Sun-King” Battistelli sat on the municipal council of St. Germain-en-Laye as Deputy Mayor for culture from 2008 to 2014.

From 2014 to 2017 he was a delegated councillor in charge of the Théâtre Alexandre Dumas.

In October 2017 he reassumed his former position as Deputy Mayor for culture.

Given his close involvement with the political life of St. Germain-en-Laye it’s almost impossible to believe that he is not fully aware of the poisonous legacy of SIDRU’s “toxic loans” which his political mentor the late Emmanuel Lamy bequeathed to the citizenry of the urban agglomerations of Grand Paris Seine et Oise and Saint Germain Boucles de Seine.

“From 2014 to 2017 he was a delegated councillor in charge of the Théâtre Alexandre Dumas.”Battistelli’s official EPO profile (see CV [PDF]) also emphasises that he plays “an active role in public and community life” in France. So it would also be surprising if he was not au fait with the more general problems caused by “toxic loans” in his home country and the risks of speculative gambling with public money in the global casino of the international financial markets.

Against this backdrop it remains a mystery as to why Battistelli in his role as EPO President has been so keen to push for the inclusion of exotic and speculative “financial products”, such as derivative instruments, asset-backed securities (ABS), mortgage-backed securities (MBS) and Credit Default Swaps (CDS), in the provisions of the EPO’s New Investment Guidelines.

It is also something of an enigma as to why the Administrative Council was so quick to rubber-stamp these questionable proposals and to subsequently approve the allocation of the EPO’s whopping cash surplus of around € 2.3 billion to the newly established “treasury investment fund”.

According to EPO insiders the sole dissenting voice on the Administrative Council was that of the German delegation which seems to have been the only one of the 38 national delegations to have done its homework properly.

“Against this backdrop it remains a mystery as to why Battistelli in his role as EPO President has been so keen to push for the inclusion of exotic and speculative “financial products”, such as derivative instruments, asset-backed securities (ABS), mortgage-backed securities (MBS) and Credit Default Swaps (CDS), in the provisions of the EPO’s New Investment Guidelines.”One might have expected more prudence and “due diligence” from the governing body of such an economically significant pan-European intergovernmental organisation.

However, when we recall that this is basically the same Administrative Council which agreed to the abolition of its own independent Audit Committee at the behest of Battistelli in 2011, then perhaps current events surrounding the New Investment Guidelines and the “treasury investment fund” are not really so surprising.

Defenders of the New Investment Guidelines will undoubtedly point out that the inclusion of exotic and speculative “financial instruments” is limited to 15% of the total investment portfolio.

But to argue like this is to miss the point.

Even if only a subset of the investments within this 15% speculative slice were to turn “toxic” the fallout could be catastrophic. A few “bad apples” have the potential to significantly reduce or even obliterate the return from other more conservative investments. In a worst case scenario if some of the speculative investments were to go “pear-shaped” this could lead to an erosion of the fund’s capital.

“According to EPO insiders the sole dissenting voice on the Administrative Council was that of the German delegation which seems to have been the only one of the 38 national delegations to have done its homework properly.”Those who try to dismiss such “horror scenarios” by saying that they are unlikely to materialise need look no further than the débacle of SIDRU’s “structured debt products” and the myriad other cases of “toxic loans” which continue to plague municipal councils throughout France.

Another as yet unsolved riddle relating to the EPO’s new “treasury investment fund” concerns its management.

From the comments made by Dr. Thorsten Bausch on the Kluwer Patent Blog in March of this year it seems that the general idea is to have “a diversified portfolio managed by external experts”.

Information from EPO sources indicates that a decision has already been approved by the Administrative Council’s Budget and Finance Committee to allocate the EPO’s surplus of around € 2.3 billion to the new fund.

“Information from EPO sources indicates that a decision has already been approved by the Administrative Council’s Budget and Finance Committee to allocate the EPO’s surplus of around € 2.3 billion to the new fund.”However, it has not yet been revealed which “external experts” will be entrusted with the management of this impressive cash pile and how their “compensation package” is going to be structured.

Presumably these details will be revealed in due course.

In the meantime let us hope for the sake of all concerned that the persons selected for this task will not be “experts” from the POTT school of investment management who operate according to the motto: “Prends l’oseille et tire-toi!” – “Take the money and run!”

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 16/9/2019: Qt Quick on Vulkan, Metal, and Direct3D; BlackWeb 1.2 Reviewed

    Links for the day



  2. Richard Stallman's Controversial Views Are Nothing New and They Distract From Bill Gates' Vastly Worse Role

    It's easier to attack Richard Stallman (RMS) using politics (than using his views on software) and media focus on Stallman's personal views on sexuality bears some resemblance to the push against Linus Torvalds, which leans largely on the false perception that he is sexist, rude and intolerant



  3. Links 16/9/2019: Linux 5.3, EasyOS Releases, Media Backlash Against RMS

    Links for the day



  4. Openwashing Report on Open Networking Foundation (ONF): When Open Source Means Collaboration Among Giant Spying Companies

    Massive telecommunications oligopolies (telecoms) are being described as ethical and responsible by means of openwashing; they even have their own front groups for that obscene mischaracterisation and ONF is one of those



  5. 'Open Source' You Cannot Run Without Renting or 'Licensing' Windows From Microsoft

    When so-called ‘open source’ programs strictly require Vista 10 (or similar) to run, how open are they really and does that not redefine the nature of Open Source while betraying everything Free/libre software stands for?



  6. All About Control: Microsoft is Not Open Source But an Open Source Censor/Spy and GitHub/LinkedIn/Skype Are Its Proprietary Censorship/Surveillance Tools

    All the big companies which Microsoft bought in recent years are proprietary software and all of the company’s big products remain proprietary software; all that “Open Source” is to Microsoft is “something to control and censor“



  7. The Sad State of GNU/Linux News Sites

    The ‘media coup’ of corporate giants (that claim to be 'friends') means that history of GNU/Linux is being distorted and lied about; it also explains prevalent lies such as "Microsoft loves Linux" and denial of GNU/Free software



  8. EPO President Along With Bristows, Managing IP and Other Team UPC Boosters Are Lobbying for Software Patents in Clear and Direct Violation of the EPC

    A calm interpretation of the latest wave of lobbying from litigation professionals, i.e. people who profit when there are lots of patent disputes and even expensive lawsuits which may be totally frivolous (for example, based upon fake patents that aren't EPC-compliant)



  9. Links 15/9/2019: Radeon ROCm 2.7.2, KDE Frameworks 5.62.0, PineTime and Bison 3.4.2

    Links for the day



  10. Illegal/Invalid Patents (IPs) Have Become the 'Norm' in Europe

    Normalisation of invalid patents (granted by the EPO in defiance of the EPC) is a serious problem, but patent law firms continue to exploit that while this whole 'patent bubble' lasts (apparently the number of applications will continue to decrease because the perceived value of European Patents diminishes)



  11. Patent Maximalists, Orbiting the European Patent Office, Work to 'Globalise' a System of Monopolies on Everything

    Monopolies on just about everything are being granted in defiance of the EPC and there are those looking to make this violation ‘unitary’, even worldwide if not just EU-wide



  12. Unitary Patent (UPC) Promotion by Team Battistelli 'Metastasising' in Private Law Firms

    The EPO's Albert Keyack (Team Battistelli) is now in Team UPC as Vice President of Kilburn & Strode LLP; he already fills the media with lies about the UPC, as one can expect



  13. Microsoft Targets GNU/Linux Advocates With Phony Charm Offensives and Fake 'Love'

    The ways Microsoft depresses GNU/Linux advocacy and discourages enthusiasm for Software Freedom is not hard to see; it's worth considering and understanding some of these tactics (mostly assimilation-centric and love-themed), which can otherwise go unnoticed



  14. Proprietary Software Giants Tell Open Source 'Communities' That Proprietary Software Giants Are 'Friends'

    The openwashing services of the so-called 'Linux' Foundation are working; companies that are inherently against Open Source are being called "Open" and some people are willing to swallow this bait (so-called 'compromise' which is actually surrender to proprietary software regimes)



  15. Microsoft Pays the Linux Foundation for Academy Software Foundation, Which the Linux Foundation is Outsourcing to Microsoft

    Microsoft has just bought some more seats and more control over Free/Open Source software; all it had to do was shell out some 'slush funds'



  16. Links 14/9/2019: SUSE CaaS Platform, Huawei Laptops With GNU/Linux

    Links for the day



  17. Links 13/9/2019: Catfish 1.4.10, GNOME Firmware 3.34.0 Release

    Links for the day



  18. Links 12/9/2019: GNU/Linux at Huawei, GNOME 3.34 Released

    Links for the day



  19. Links 12/9/2019: Manjaro 18.1 and KaOS 2019.09 Releases

    Links for the day



  20. EPO: Give Us Low-Quality Patent Applications, Patent Trolls Have Use for Those

    What good is the EPC when the EPO feels free to ignore it and nobody holds the EPO accountable for it? At the moment we're living in a post-EPC Europe where the only thing that counts is co-called 'products' (i.e. quantity, not quality).



  21. Coverage for Sponsors: What the Linux Foundation Does is Indistinguishable From Marketing Agencies' Functions

    The marketing agency that controls the name "Linux" is hardly showing any interest in technology or in journalism; it's just buying media coverage for sponsors and this is what it boils down to for the most part (at great expense)



  22. Watch Out, Linus Torvalds: Microsoft Bought Tons of Git Repositories and Now It Goes After Linux

    Microsoft reminds us how E.E.E. tactics work; Microsoft is just hijacking its competition and misleading the market (claiming the competition to be its own, having "extended" it Microsoft's way with proprietary code)



  23. Links 11/9/2019: Acer in LVFS, RawTherapee 5.7 and Qt 5.12.5 Released

    Links for the day



  24. Linux Foundation Inc. Buys Press About Itself and Media Coverage for Sponsors

    Sponsoring so-called ‘news’ sites is bad enough; it is even worse when such media then covers you and your sponsors, such as Snyk (a Linux Foundation sponsor/member, fancier word for client)



  25. Links 11/9/2019: Django 3.0 Alpha, Sunsetting Python 2

    Links for the day



  26. Web Site Called Linux.com Still Exists Only or Mostly to Promote Anti-Linux Firms and Openwashing

    As the Linux Foundation transitions into the Public Relations (PR) industry/domain we should accept if not expect Linux.com to become an extension of PR business models; the old Linux.com is long gone (all staff fired)



  27. Links 10/9/2019: Krita 4.2.6, Ubuntu 19.10 to Boot Faster

    Links for the day



  28. What the Linux Foundation's Jim Zemlin Really Thinks of Desktop/Laptop GNU/Linux

    Interesting words from Ken Starks resonate well with what we nowadays see in the so-called 'Linux' Foundation, whose dedication to Linux is like that of a circus to a monkeys' sideshow



  29. Links 10/9/2019: Kate Planning and GnuCash 3.7

    Links for the day



  30. The Sad Truth That Linux Foundation Staff is Against GPL/Copyleft and Sometimes Against Linux (Unless It's Run Under Vista 10)

    The Linux Foundation works for whoever pays the Linux Foundation and sadly that usually means companies that aren’t dedicated to Linux, to Software Freedom or even to simple truths and to the Rule of Law


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts