Cyprus-Forum.com

[Tim Drayton]

Just a few examples of how banks are regulated around the world:

Banking in Cyprus is regulated by the Banking Laws of 1997 to 2005.
http://www.ldlaw.com.cy/banking.php

Banking in France is regulated by Law 2010-1249 of 22 October 2010 on Banking and Financial Regulation.
https://www.loc.gov/law/help/fr-banking/index.php

Banking in Switzerland is regulated by the Federal Act on Banks and Savings Banks (colloquially known as the Banking Law of 1934).
https://en.wikipedia.org/wiki/Federal_A ... ings_Banks

Banking in Brazil is regulated by the Banking Law (Law 4595/1964)
http://www.gsma.com/mobilefordevelopmen ... ng2008.pdf

[Tim Drayton]

If you want to know more about governing law clauses, here is an article written from the US perspective, including the comment:

“A governing law clause is an explicit manifestation of the parties' intent, and is typically respected by courts. If there is a governing law clause, the choice of governing law question is answered, and the case moves forward under the specified governing law. Governing law clauses are generally respected by courts.”

https://www.contractstandards.com/clauses/governing-law

The point is, even were it indispensable for financial markets to operate under English law (a highly spurious claim: the other two main international financial markets are in New York and Tokyo, and they don’t), it would be possible for a market operating in another European country to elect to use English law, should it so wish, using governing law clauses.

[Tim Drayton]

And apart from that, there is nothing to stop the German parliament from passing an act decreeing that a new international financial market to be established in Frankfurt will be regulated under English law. It is a bogus issue, anyhow, because German law regulating the financial sector is not inferior to English law.

[Robin Hood]

English law has been chosen for the Banking system and it is transposing English Law into EU Law that will be difficult and a very long process.

What a load of rubbish. You really know nothing, I am sorry to say. Oh ... Don't tell me. You were dining with Mark Carney, Governor of the Bank of England, at the weekend, and he told you so.

You are making yourself look as stupid as PaulZKTV! I obviously have a greater capacity to look at the whole picture rather than just select the bit that appears to support rather limited understanding of the subject.

(Correction)

All four of the national banking systems you quote use their own laws within their own borders. A Cypriot bank operating in the UK will use the Cypriot banking regulations internally? (an assumption). It is surely just common sense that if you intend to permanently transfer the banking function currently from one country (UK?) to another (Germany?) then you need to transpose the function to comply with the laws of the country that it is transferred to. That is why they are currently threatening to revoke the UK's 'passport' which allows the UK banks to function using UK Law, outside the UK. Or didn't that aspect occur to you?

BTW:Sarcasm is the lowest form of wit and no substitute for knowledge!

FYI: I have never met Carney nor claimed to; I have never visited the BoE and I have not been to the UK for around 12 years.

[Robin Hood]

If you want to know more about governing law clauses, here is an article written from the US perspective, including the comment:

“A governing law clause is an explicit manifestation of the parties' intent, and is typically respected by courts. If there is a governing law clause, the choice of governing law question is answered, and the case moves forward under the specified governing law. Governing law clauses are generally respected by courts.”

https://www.contractstandards.com/clauses/governing-law

The point is, even were it indispensable for financial markets to operate under English law (a highly spurious claim: the other two main international financial markets are in New York and Tokyo, and they don’t), it would be possible for a market operating in another European country to elect to use English law, should it so wish, using governing law clauses.

I am not a Lawyer and neither are you. I do not claim any detailed knowledge of the Law ..... you obviously do!

[Tim Drayton]

All four of the banks you quote ...

I haven't quoted any banks. I have referred, by way of example, to the banking systems in four countries and the way they are regulated, and it is not under English law.

[Robin Hood]

And apart from that, there is nothing to stop the German parliament from passing an act decreeing that a new international financial market to be established in Frankfurt will be regulated under English law. It is a bogus issue, anyhow, because German law regulating the financial sector is not inferior to English law.

I find it hard to believe you can just chose which banking Laws you wish to apply! Again, common sense says; if you were allowed to do that all the banks could adopt the laws that apply in say the Cayman Islands or where they have strict secrecy regulations, so that people who make a lot of money could hide it from the tax authorities. When they forced Switzerland to 'disclose' US citizens account details ..... the money very quickly disappeared to another banking jurisdiction.

You may be right .......... but it does not make sense for it to be so.

[Robin Hood]

All four of the banks you quote ...

I haven't quoted any banks. I have referred, by way of example, to the banking systems in four countries and the way they are regulated, and it is not under English law.

Stop wriggling! Your post implied that other countries had different banking systems and comply with national banking regulations (law) and not UK Law ........ that would apply to all national banks in that country. Although I assume not necessarily to foreign banks, as I understand it.

[Tim Drayton]

A Cypriot bank operating in the UK will use the Cypriot banking regulations internally? (an assumption). It is surely just common sense that if you intend to permanently transfer the banking function currently from one country (UK?) to another (Germany?) then you need to transpose the function to comply with the laws of the country that it is transferred to.

Yes, and in the same way, a UK bank operating in Cyprus will be governed by Cyprus banking law. Thus, the assertion "English law has been chosen for the Banking system" holds no water. A UK bank that operates in Germany will fall under German banking law and regulations, yes.

What we are talking about, though, is financial markets, and financial markets are essentially mechanisms for linking buyers and sellers of assets, and each trade constitutes a contract. If the spurious claim that financial markets somehow must be regulated under English law were true, there is nothing to preclude these contracts from being governed by English law through the inclusion of an appropriate governing law clause. As I have said, there is also nothing to stop German parliament from legislating that English law will apply to these markets, should it see fit. These are all totally bogus objections.

Steve Keen isn't a lawyer, either, but I see you have no problem about him spouting off about the law. I think I know more about international private law than he does, actually.

[Tim Drayton]

I find it hard to believe you can just chose which banking Laws you wish to apply!

No, well I didn't say that. If you want to know what a governing law clause is, you could at least read the article I quoted. In all jurisdictions where liberal free-market economics is the dominant pardigm - most jurisdictions nowadays - under the doctrine of freedom to contract the parties are free to agree anything they like provided it does not run counter to morality, imperative legal provisions or public policy, and this includes the freedom to determine which legal system the contract is to be governed by.