A secretive banking elite rules trading in derivatives
One member is Paul Mitrokostas, a D-Y grad class of 1984
By Walter Brooks
Is it really so bad if an elite cabal of international bankers meets once a month in midtown Manhattan to conspire about the rules governing derivatives trading?
Maybe not if one of them is "one of our guys".
Paul Mitrokostas, Dennis-Yarmouth Regional High School class of 1984 (interesting year) is one of the just revealed "Rulers of the Financial World".
He went on to Penn and the Wharton School of Business, got a law degree, and after a stint at Lehman Brothers, ended up one of the top dollar-dogs at Barclays Bank.
Over the weekend, Louise Story of the New York Times breathlessly told the tale of a regular meeting of the risk committee of the derivatives clearing house set up by the InterContinental Exchange, usually known as ICE.
The main finacial industry objection to this committee is that outside financial firms complain that it is a cabal of insiders set up to keep out competition.
"The marketplace as it functions now adds up to higher costs to all Americans."
- Gary Gensler, CFTC.
The cabal outed for blocking another banker
It is now suggested that the reason the nine bankers were "outed" is because Paul and his octet blocked Citadel's Ken Griffin, the founder of Citadel Investment Group, and the Bank of New York Mellon, from participating in a decision-making committee which controls the expensive exchange of derivatives, a wide ranging term that means basically anything that isn't a share of a stock, but can still be traded, i.e. futures, swaps, options, calls, puts, for example - all derivatives.
The New York Times, followed by the rest of the world's media, reported this week that the nine men share a common goal which is to protect the interests of big banks in the vast market for derivatives, one of the most profitable and controversial fields in finance.
They also share a common secret: the details of their meetings, even their identities, have been strictly confidential.
Two Greeks control a quarter of the world's derivatives
The nine bank members are: Thomas J. Benison of JP Morgan Chase & Company; James J. Hill of Morgan Stanley; Athanassios Diplas of Deutsche Bank; Paul Hamill of UBS; Paul Mitrokostas of Barclays; Andy Hubbard of Credit Suisse; Oliver Frankel of Goldman Sachs; Ali Balali of Bank of America; and Biswarup Chatterjee of Citigroup.
And some of you thought that our kids at D-Y High School aren't getting a great education.