5:31p ET Monday, June 7, 2021
Dear Friend of GATA and Gold:
Many predictions are being offered about the impact of the “Basel 3” regulations on “unallocated gold” that have been proposed by the Bank for International Settlements and that the European Banking Authority has scheduled for implementation in the European Union at the end of this month.
Some observers foresee an explosion in the gold price, likely carrying silver and other metals with it, while others expect nothing special at all, figuring that central banks would never do anything favorable for the once and potentially future world reserve currency, which even now competes most inconveniently with their own currencies.
As Boris Johnson and pals assess whether to lift all Covid restrictions on June 21, banking regulators have their own crucial call to make.
Late last year, the Bank of England s Prudential Regulation Authority relaxed its request for banks to suspend dividends to shareholders during the pandemic.
However, temporary guardrail restrictions were left in place. These put limits on payouts based on previous quarterly profits.
Decision time: The Prudential Regulation Authority relaxed its request for banks to suspend dividends to shareholders during the pandemic, but guardrail restrictions were left in place
The PRA vowed to transition back to normality for dividends this year and banks appear to believe the time is right to ramp up shareholder payouts.
Some 34% of Britons, and three-quarters of people in their thirties familiar with the likes of bitcoin, ethereum and dogecoin said consumer protections would make them likelier to invest.
Deadline Net Zero
Emma Howard Boyd s Speech at the Transition Pathway Initiative event at the London Stock Exchange, Thursday 13 May 2021
From:
13 May 2021 (Transcript of the speech, exactly as it was delivered)
Two weeks ago, Germany’s constitutional court said the country’s 2019 climate law is inadequate because the largest share of decarbonisation needed for its 2050 climate goals won’t be met until after 2030.
While Germany had targeted to lower greenhouse gas emissions 55 percent by 2030, compared to 1990 levels, the court ordered the government to revise the law by the end of the year.
The case brought by nine young climate activists, supported by a coalition of environmental groups, successfully argued that the planned transition offloaded burdens into the future and so violates the rights of younger generations.
Pending “Basel III” regulations emanating from the Bank for International Settlements could destroy the clearing and settlement system for “unallocated” – that is, “paper” or imaginary – gold and silver, the London Bullion Market Association and the World Gold Council warned the Bank of England this week.
In a 58-page protest submitted to the Bank of England’s Prudential Regulation Authority, the LBMA and the World Gold Council complained that the “Net Stable Funding Ratio” provision of the Basel III regulations would require the London bullion banks to hold funds offsetting 85 percent of the value of the unallocated gold they hold for customers, and the banks could not afford this.