Connect with us

Could Europe Create an Alternative for SWIFT?

Published

on

Germany’s foreign minister, Heiko Josef Maas, has publicly criticized his country’s monetary alliance with the United States. Maas published an op-ed in Germany’s Handelsblatt newspaper suggesting that independent payment channels should be created to counter U.S. political and economic influence in Iran. The move was made in retaliation for the U.S. government’s decision to withdraw from the Obama-era Joint Comprehensive Plan of Action nuclear deal with Iran. As a consequence, Iran will face the old, and entirely new, U.S. sanctions. However, Iran, France, Germany, and Britain are still committed to the JCPOA.

Maas wrote that “Europe should not allow the US to act over our heads and at our expense. For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US.” The current international payment model involves routing transactions through the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, international payment network. SWIFT allows financial organizations to securely communicate financial orders through a coded language. Competitors include Ripple and CHIPS, though SWIFT is the leader in the space. SWIFT was founded in Brussels in 1973 and runs two data centers – one in the United States and the other in the Netherlands. In October, SWIFT executives were in Washington, D.C., holding meetings with U.S. President Trump’s administration officials to persuade Iran retains its access to the international banking system. During President Obama’s term, SWIFT disconnected Iran due to sanction threats. However, a key part of the 2015 Iran nuclear deal was that Iran be given access to SWIFT. Some people argue politicizing SWIFT would drive Europe closer to Russia and China in terms of adopting alternative currencies.

EU Seeks to Decrease U.S. Financial Legal Power

While some are skeptical about Germany’s ability and determination to threaten the global reserve currency, the European Union has also declared that member states were creating a payment system that would free oil companies and businesses to trade directly with Iran. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Calamos Investments to Acquire Timpani Capital Management

Published

on

Naperville, Illinois-based Calamos Investments signed a deal to acquire Milwaukee-based Timpani Capital Management LLC, which focuses on small and small-midcap growth investing. Founded in April 2008, Timpani Capital Management oversees around US$ 588 million in assets. The deal is expected to close in the second quarter of 2019.

Continue Reading

RDIF and Russia-Japan Investment Fund to Invest in Russian Subsidiary of SBI Holdings

Published

on

The Russian Direct Investment Fund (RDIF) and the Russia-Japan Investment Fund (launched by RDIF, the Japan Bank for International Cooperation and JBIC IG Partners) have reached an agreement with the Japanese corporation SBI Holdings to invest in SBI Bank LLC, SBI Holdings’ subsidiary in Russia. SBI Bank LLC will undergo a large-scale reorganization.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Ocasio-Cortez and Maxine Waters to Oversee US Banking System via House

Published

on

The youngest woman ever to serve in U.S. Congress – starting at the age of 29 – already has an opponent in her sights. Freshman U.S. Representative Alexandria Ocasio-Cortez, often dubbed AOC on Twitter, was appointed to the House Financial Services Committee, where the democratic socialist will oversee Wall Street. This committee oversees the banks and financial institutions of the United States. With Republicans controlling the U.S. Senate and the White House, and the Democrats controlling the House, one can expect less game-changing bills being turned into laws in the banking sector.

While bartending and waiting tables at the Flats Fix taco bar in Union Square, Ocasio-Cortez upset the more centrist Representative Joe Crowley, Chairman of the House Democratic caucus. Encouraged by her success, other far left democrats are planning to challenge moderate democrats in the 2020 primaries. Ocasio-Cortez is also expected to further strengthen the influence of Chairwoman Maxine Waters of the House Financial Services Committee. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.