GROK on Mark Carney, part 5
Context matters. The highest financial perch in the world, aside from perhaps the US Federal Reserve, is the FINANCIAL STABILITY BOARD. A globalist elite, Mark Carney directed it for seven years. 👀
QUESTION 5️⃣ to GROK.
What is the significance of the FSB in global finance and Mark Carney’s association with it?
GROK says:
The Financial Stability Board (FSB) is a pivotal international body in global finance, established to promote financial stability and coordinate regulatory efforts across major economies. Its significance stems from its role in addressing systemic risks, setting global standards, and fostering cooperation among central banks, finance ministries, and regulatory authorities. Below is a concise yet comprehensive overview of the FSB’s role and impact, with context relevant to Mark Carney’s chairmanship (2011–2018).
What is the FSB?
• Founded: 2009, succeeding the Financial Stability Forum (FSF), at the G20 London Summit in response to the 2008 global financial crisis.
• Membership: Includes representatives from G20 countries, major financial centers (e.g., Hong Kong, Singapore), and international organizations like the IMF, World Bank, Bank for International Settlements (BIS), and OECD.
• Headquarters: Basel, Switzerland, hosted by the BIS.
• Governance: Operates under a Plenary, with a Chair appointed by G20 leaders. Mark Carney served as Chair from 2011 to 2018, succeeding Mario Draghi and followed by Randal Quarles.
Significance in Global Finance
1. Coordination of Global Financial Regulation:
• The FSB facilitates cooperation among national regulators, central banks, and international standard-setting bodies (e.g., Basel Committee on Banking Supervision) to harmonize rules and prevent regulatory arbitrage.
• It develops global standards for financial institutions, such as capital requirements (Basel III), which ensure banks hold sufficient reserves to withstand crises. These standards, while non-binding, are widely adopted by member countries.
2. Monitoring and Mitigating Systemic Risks:
• The FSB identifies vulnerabilities in the global financial system, such as excessive leverage, shadow banking, or emerging risks like fintech and climate change.
• It produces annual reports on systemic risks and conducts peer reviews to assess member countries’ compliance with agreed standards.
• Example: The FSB’s Global Monitoring Report on Non-Bank Financial Intermediation tracks risks in shadow banking, which grew to $63 trillion by 2023.
3. Addressing “Too Big to Fail” Institutions:
• The FSB designates Global Systemically Important Banks (G-SIBs) and Insurers (G-SIIs), requiring them to hold higher capital buffers and develop resolution plans to prevent taxpayer-funded bailouts.
• Its Total Loss-Absorbing Capacity (TLAC) standard ensures large banks can be wound down orderly in a crisis, reducing contagion risks.
4. Driving Post-2008 Reforms:
• Post-2008, the FSB spearheaded G20-mandated reforms, including:
• Over-the-counter (OTC) derivatives reforms: Requiring centralized clearing and reporting to reduce counterparty risks.
• Shadow banking regulation: Enhancing oversight of non-bank entities like hedge funds and money market funds.
• Bank resolution frameworks: Enabling orderly restructuring or liquidation of failing banks.
• These reforms, implemented during Carney’s tenure, strengthened global financial resilience, with Basel III adoption reaching 90% across G20 countries by 2020.
5. Emerging Issues: Fintech, Climate, and Digital Currencies:
• The FSB has expanded its focus to address modern challenges:
• Fintech and crypto: It monitors risks from cryptocurrencies and stablecoins, advocating for regulation to prevent money laundering and financial instability (e.g., 2022 FSB Crypto-Asset Framework).
• Climate-related risks: Under Carney’s leadership, the FSB launched the Taskforce on Climate-related Financial Disclosures (TCFD) in 2015, chaired by Michael Bloomberg, to standardize corporate climate risk reporting. TCFD has been adopted by over 4,000 organizations globally by 2024.
• Central Bank Digital Currencies (CBDCs): The FSB coordinates standards for CBDC interoperability, ensuring they don’t disrupt global financial stability.
6. Influence on National Policies:
• While the FSB lacks legal enforcement power, its recommendations carry weight due to G20 backing and peer pressure. Countries align with FSB standards to maintain credibility in global markets.
• Example: The FSB’s push for stronger bank capital rules led to Canada’s robust banking system, often cited as a model during Carney’s Bank of Canada tenure.
Mark Carney’s Role as FSB Chair (2011–2018)
• Leadership and Reforms:
• Carney, appointed by the G20, oversaw the implementation of post-2008 reforms, ensuring Basel III and derivatives rules were rolled out globally.
• He prioritized resolving “too big to fail” banks, finalizing the Key Attributes of Effective Resolution Regimes (2011, updated 2014), which became a global standard for bank wind-downs.
• His launch of the TCFD was a landmark move, integrating climate risks into financial supervision, a focus he continued as UN Special Envoy for Climate Action.
• Global Impact:
• Carney’s tenure strengthened the FSB’s role as a proactive coordinator, with its 2017 report estimating that post-crisis reforms reduced the probability of a systemic banking crisis by 50%.
• He navigated tensions between G20 members, balancing U.S. deregulation pressures with European and Canadian calls for tighter oversight.
• Criticism:
• Some critics, including X posts and alternative media, view the FSB under Carney as overly influential, accusing it of imposing “globalist” regulations that infringe on national sovereignty. These claims often tie to his WEF and Bilderberg ties but lack concrete evidence.
• Others, like Canadian conservative commentators, argue his TCFD focus diverted attention from economic growth, though supporters credit it with mainstreaming climate finance.
Broader Context and Significance
• Stabilizing Global Markets:
• The FSB’s work ensures financial crises, like 2008, are less likely by addressing interconnected risks across borders. Its reforms have increased global bank capital by $2 trillion since 2010, per BIS data (2023).
• It acts as a “fire warden” for global finance, spotting risks early and coordinating responses, as seen during the COVID-19 market turmoil in 2020.
• Balancing Innovation and Stability:
• The FSB navigates the tension between fostering innovation (e.g., fintech, CBDCs) and preventing instability, ensuring new technologies don’t undermine financial systems.
• Limitations:
• The FSB’s reliance on voluntary compliance can lead to uneven adoption, with some countries (e.g., China) lagging on transparency.
• Its focus on large economies can marginalize smaller nations, though it includes non-G20 members like Switzerland.
• Public Perception:
• Mainstream sources (e.g., IMF, BIS) praise the FSB’s role in global stability, but skeptics on X and outlets like the Western Standard question its influence, seeing it as part of a centralized financial control narrative, especially under figures like Carney.
Conclusion
The Financial Stability Board is a cornerstone of global finance, coordinating regulations, mitigating systemic risks, and driving reforms to prevent crises. Its significance lies in its ability to align G20 economies on standards like Basel III, tackle emerging issues like climate and fintech, and ensure financial systems are resilient. Under Mark Carney’s chairmanship (2011–2018), the FSB implemented critical post-2008 reforms and pioneered climate risk integration via TCFD, cementing its influence. While praised for stabilizing markets, it faces criticism for perceived overreach and elite-driven agendas, though such claims often lack evidence. The FSB remains essential for a globalized financial system, balancing stability with innovation.
If you’d like a deeper dive into a specific FSB function (e.g., TCFD, crypto regulation), Carney’s contributions, or a different format (e.g., table), let me know!
Know who you are voting for 👁️, please‼️
The April 28 election is perhaps the most important of my lifetime. I have done my homework on Pierre Poilievre and Mark Carney, and I have shared some of it with you.
As an Advocate for Less Government and a longtime Libertarian, I believe that…
🔴 Canada’s #1 problem is TOO MUCH GOVERNMENT 🔴
Mark Carney represents the globalist wolf from a variety of globalist institutions whose power elites want access to, and control of, Canada’s chicken coup.
Pierre Poilievre wants the chicken coup to prosper under local caregivers and decision-makers.
Liberals, and Liberal-bribed media want you to see Mark Carney as the shiny new penny that will usher in a new age of ….
… what, exactly⁉️.
There’s lots of hype, but very little substance in Carney’s campaign of grand promises devoid of details.
NICE GENE