Kotegawa Assesses, Cottarelli Pushing ESM Reform Means Deutsche Bank Is Going Under
Nov. 30, 2019 (EIRNS)—Daisuke Kotegawa, the former Ministry of Finance official and Japanese Executive Director at the IMF, told EIR that the effort by Carlo Cottarelli, the former director of fiscal affairs at the IMF, to force through the European Stability Mechanism reform, means that Deutsche Bank is ready to go under. The reform will force all EU members to bail out the banks when they blow out in the onrushing financial crisis—a policy being strongly opposed by leading Italians, who know it would bankrupt their country.
Kotegawa, who knows Cottarelli from their time together at the IMF, told EIR that he was an honest person, which means that he knows that the reform is the only way in the current system to bail out Deutsche Bank and others which are likely to collapse. But, Kotegawa went on, although Deutsche Bank must be bailed out for fear its crash will cause the entire system to collapse, it will be extremely unpopular for taxpayers to have to do the bail-out, and in the long run it won’t work unless that population is assured that those responsible are punished.
He suggested that those responsible include former ECB President Mario Draghi, as well as all the traders at the London branch of Deutsche Bank over the 2009-2011, when the bank was turned into a massive gambling casino with the world’s biggest derivatives portfolio. They should all be prosecuted, he recommended. Then the real reform of the entire system must proceed, along the lines of Lyndon LaRouche’s Four Laws.