Sunday, December 16, 2012

Carney? Criticised? Can't be!

It seems the impeccable Mark Carney isn't so impeccable after all. Boy Wonder is now coming under criticism for alleged conflict of interest in several news articles over the weekend, like this one in MacLeans entitled The Carney affair with the Liberal Party: It will all end in tears , or the Sun article entitled Recent controversy colours Carney's career.

Conflict of interest is nothing new to Mark Carney, in fact "conflict of interest" defines Mark Carney's time in public life from the get-go, starting with his role in the Department of Finance (prior to his appointment as Governor of the Bank of Canada).

In the Department of Finance, Carney was responsible for the "income  trust" file. Think of income trusts as the equivalent of a profit  sharing investment vehicle that was popular with Canadians seeking  retirement income. Income trusts, were however, not popular with the  CEOs of Canada's large corporations (many of whom were Mark Carney's former/prospective clients while at Goldman Sachs), since income trusts placed corporate governance in the hands of investors (as opposed to CEOs) and served to lessen the abusive compensation earned by CEOs.

This friction between investors and CEOs came to a head in 2006 and CEOs lobbied the Canadian government to shut this form of investment vehicle down (against the interests of their shareholders). Under Mark Carney's directive, the government sided with his former/prospective clients, the CEOs. To bring about the CEOs desire to kill income trusts, Mark Carney resorted to the completely false (and hence fraudulent) argument that income trusts were causing the government to lose tax revenue (when income trusts actually enhance the gov't's tax collection).

This is where Mark Carney proved himself to be guilty of gross conflict of interest, because the policy that he championed caused 2.5 million Canadians to  lose $35 billion (yes, billion) of their hard earned life savings, and all Canadians to lose an essential retirement income investment vehicle, when the government announced a double taxation of income trusts.

Mark Carney's policy was premised on a total falsehood (alleged tax  leakage) and caused a major loss to investors, while advancing the narrow interests of Corporate CEOs, who were his clients and prospective clients while he worked at Goldman Sachs.

Mark Carney = Gross conflict of interest.

I wonder what policy scams he'll will hoist on British citizens?

3 comments:

Dr Mike said...

Off to Britain eh for Uncle Mark...

Kind of like the Goldman Sachs magical mystery tour minus the mystery.

The big problem is that Carney is just the tip of the iceberg here as this is no one man show but a carefully crafted plan to reshape the way countries & economies are run & do business.

The income trust business structure in Canada was an impediment to the G-S plan for everyone & Mark was the man that removed that hurdle.

On to Britain.....

Dr Mike Popovich

kitt said...

The media is daft to think Liberals miss Carney. Flaherty now ???? really, really missed his partner in scamming the unwashed.

The Dude said...

Hello? The Sun??? The cons loved Carney. Flaherty looked like he wanted to make love to him at that press conference.