The food market would be better off without the investment banks? Undoubtedly, "replied the British NGO World Development Movement (WDM) - the equivalent of Transparency International for all economic development issues - which on Tuesday released a new study of the impact of speculation on rising food prices whose level reached today than in 2008, during the riots. "Banks have depleted plunged into famine and millions of people in developing countries," says FRANCE 24's and Murray Worthy, head of WDM strategies.
Since the financial crisis, banks have certainly become easy targets, but figures provided by the NGOs are talking.British bank Barclays, for example, collected 383 million euros in 2010 by simply betting on rising food prices. "It's an estimate that we made from public figures from Barclays Capital [the investment bank Barclays, Ed] and data market," said Murray Worthy. Barclays declined to respond to these assertions.
This taste of the British bank for speculation in these markets has no equal in Europe. Only U.S. banks Goldman Sachs and Morgan Stanley are the strongest.Thus, according WDM, Goldman Sachs dominates this small world of speculators with a billion dollars (684 million) collected per year in these markets.
After the subprime
Speculation on food are certainly since the early 20th century, but has reached dangerous levels at the dawn of the 2008 food crisis. In 2003, she was indeed the order of $ 3 billion per year ... against 55 billion in 2008, said Olivier De Schutter, the UN special rapporteur for the right to food. "2011 should be another record year," warns Murray Worthy.The amount of speculative trading on commodity markets (food, energy, metals) is expected to reach $ 400 billion this year, against 300 billion in 2008, the UN says.
The appetite of investment banks for food grew after the collapse of the subprime bubble. "They have sought a new home which was not yet regulated in which to invest too quickly," Murray decrypts Worthy.They were then reminded that the U.S. had deregulated the marketing of foodstuffs in the early 2000s.
Bubble
Barclays Capital, Goldman Sachs and others have then imported and developed financial products that made the heyday of the U.S. housing market ... before driving to his loss. "These banks have transformed the property market is often vital for people in financial market," laments Murray Worthy. Barclays Capital has even created the equivalent of CDOs ("Collateralized Debt Obligation") for raw materials, these highly sophisticated financial products which have played an important role in the subprime crisis.They allowed players who have no connection with the purchase and sale of maize, wheat and other grains - such as pension funds - to invest their money in these markets, denounces World Development Movement.
The NGO acknowledges that speculation is only one element among many of soaring food prices. The OECD estimates that the weather conditions, the development of biofuels and the current instability of the Arab countries have a greater impact. But for WDM, speculation escape increasingly out of control. "The bubble is now grow very quickly," warns Murray Worthy.The NGO estimated that it would limit the amounts that banks can invest in the markets for food products and better frame the nature of transactions. Recommendations already made by the European Commission in 2008 ...
