Eurozone crisis may be good news, say finance experts
Tuesday 13th December 2011, 2:57PM GMT.
Jersey Finance chief executive Geoff Cook
THERE could be a ‘silver lining’ for Jersey from the financial crisis gripping the Eurozone.
Experts say that finance firms may flee the EU and relocate to the Island.
Meanwhile, local banks are already gearing up to handle multiple currencies as the potential for a break-up of the single currency zone looms large.
And firms such as hedge funds, asset managers and banks have made inquiries about opening operations here in the last few months.
Jersey Finance chief executive Geoff Cook said that the pipeline of potential new entrants was healthy. In the case of hedge funds, it is at record levels.
‘Many of these firms face an avalanche of regulation heading their way and could tempt more to relocate to the Island,’ he said.
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Wait until the UK say :Now it is time to stop!(like the fulfillment industry)
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I thought this when I first heard about Cameron vetoing, there’s also good trade potential for the UK with the far east, America and China as they will likely have the only stable currency in Europe.
Europe is knee deep in the brown stuff, we may well suffer but are essentially disengaged and open to opportunities such as this.
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This guy could spin a good situation out of being on the deck of the Titanic post iceberg encounter. Remember how he completely dismissed Jersey and the other offshore finance centres part in the facilitating of the spv and securitisation bubble that were an integral piece in the wreckless global credit explosion of the Noughties which the industrialised economies are still going to be paupered by in ten years time?
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The silver lining may be wrapped in a shell of pure clay though.
A lot of banks would take a huge capital hit if the Euro collapsed.
There are billions worth of Euro denominated debt out there, what on earth would happen to that?
Quite a few banks, including a few that are represented in Jersey, could become financial untouchables.
In the worst case some banks could actually collapse.
A lot of islanders hold property or other investments in the Euro zone. This property could become unsaleable or the investments could lose a part of their value.
There would be a hopefully brief period until the central banks reasserted their authority but we could have a total lock up of European trade, travel, etc until things were sorted out.
Some countries like Greece might become unable to borrow money at all for years with heavy financial controls by their governments.
Geoff Cook should try and think outside the island. What we might gain from a Euro collapse would be more than offset by heavy losses elsewhere
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Sounds like his mate Ozouf,everything just fine folks!!!
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“Europe is knee deep in the brown stuff, we may well suffer but are essentially disengaged and open to opportunities such as this.”
A lot of people in Jersey are not essentially disengaged as we have colleagues, friends and family in Europe.
We own property there and there are island funds and comapanies that invest there.
The island’s elctricity supply comes from Europe and one of our Internet connections uses the same cable.
There are quite a few European banks eg BNP Paribas, ABN Amro, Santander here and other banks have substantial European exposure.
An economic collapse right on our doorstep would be very far from OK for Jersey.
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Thankfully Geoff Cook was not around in the 1930′s or we could have had him saying that the rise of the Third Reich was good for Jersey finance.
It might have been, right up until the Luftwaffe landed at Jersey airport!
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Perhaps I am missing the point but how can having more spivs ie: hedge funds in Jersey be of benefit to us , lest we forget who got us into this mess in the first place . I am proud of where I was born but this industry brings nothing but sorrow to all but a few in this island and across the world.
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Can you give one piece of evidence that hedge funds “got us into this mess”? No, didn’t think so.
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Well there are quite a few examples of Hedge Funds being involved in the selection of collateral for CDOs etc so with the goal to make sure they deliberately failed and betting against them via CDSs. So yes you can. Also there was a huge spike in Oil prices around the crunch time, if you can remember, which didn’t have anything to do with fundamentals of supply and demand and which were a contributing factor to the downturn as no one could meaningfully see us shrugging off jumps like that in the cost of key factors of production.
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Even if there was a wave of golden sea weed…why would it want to stop in Jersey ..there is a big world out there !
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This is why I hate the finance industry, Europes in crisis and all Jersey Finance say is ‘oh it could benifit us’. I could be wrong of course, and if I am forgive me as my life has no connection to the finance industry (apart from helping them pay their tax contributions through GST!), but under our current 0/10 tax rate, the banks are getting off lightly whilst the tax burden has past from them to us, the ordinary people. If all these companies come over, surely it will lead to an enlargement of our so called ‘black hole’, which will lead to a further rise in GST to try and fill it. Needless to say the companies will no doubt want to bring in their own ‘experienced’ workers who will claim to come over under the J cat housing quali, but who, like so many before, will not train a local person to do the job within 5 years and will stay, which will lead to another population increase, which means more property developments etc etc etc, I dont need to go on. Good for finance, good for construction industry, but terrible for the island as a whole
The Joy!
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Are you lot raving mad???
‘The eurozone collapse is good for Jersey’… well if that’s your belief, Mr Cook, then I suggest that you and your buddies would be better employed as comedians.
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Utter tripe! The crash is on it’s way and everyone is going to get hit real hard – yes everyone! Few have prepared for the enevatable by being smart enough to buy and physically hold gold bullion. When the crash comes it will be sudden and without warning – like the big man says, the City of Babylon will crash in one hour! so do what you can while you can…
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…agree!
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OK, so where are you going to keep it? If everyone is going to get caught by the crash, then there are going to be a lot of very desperate people (>97000) on a very small island. Do you think they will line up quietly in bread queues or politely ask neighbours to borrow a cup of sugar? No. If it’s as bad as you predict there will be anarchy. You better buy a gun and surround yourself with a high electric fence. People will be after your bullion…..stop feeling so smug! I detest this ‘I’m alright Jack’ attitude. Would do the island good for people like you to trade places with others on this planet who earn a dollar a day and can not even imagine the gold bullion cushion you are bragging about.
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and surround yourself with a high electric fence.
That is fine until the electricity gives out!
You are a bit over-the-top but I agree that living through a crash is no ball of fun.
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Mark, unlike the golden bullocks’ (small ‘b’) comment above, which no doubt arises out of a progressive faith in the politics of envy, you’re obviously smart enough to see the eminent crash before us.
Most do not understand that it is not about the up’s and down’s of the markets, but rather it’s about the whole financial ‘system’ being out of control and breaking apart – MF Global a typical example.. Because unlike markets that can recover, once the ‘Financial System’ is no longer held in confidence, it can never recover.
What we do know is that when things get tough, anarch will definately show it’s ugly head (hence the move towards a police state) and when it does, people change and not always for the best. However, concerning little g b’s comment above when mentioning electric fences, consider this:
During the Occupation and while some electricity was still available, local farmers had to string electric wires throughout their crops to protect them from theft during the night, because hungrey people were willing to risk being shot for breaking the strict curfew in order to eat.
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anarchy has been in greece and the midle east most of the summer .
it does make you wonder ? what plan if any jerseys civil defence committee or what ever it is called these days, have as a back up, to feed the masses of people with no food .
the farmers cannot feed us all.
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…at least house prices might become sensible again!
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This is brilliant for Jersey. I have read all the financial sections of the UK media and they all appear to be worried about the uncertainty and the long term effect that this may have on London as a fincial centre. It is so reassuring that experts say that finance firms may flee the EU and relocate to the Island.
It’s really funny, but as soon as I heard that Cameron had used the veto, I predicted thet ther would be the usual picture of Cook and an article explaining how good it is for jersey.
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If Cameron had gone the other way we would probably be more critical.
The point of the article is that there may be a silver lining but nobody is deluding themselves about the negative. The chap is talking from a Jersey Finance perspective rather than islandwide.
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how shameful to quote ‘silver lining’ for Jersey at other nations bankrupcy…. I work in Finance but think you should be ashamed!
You should understand about bad government and management and the effects!
Just remember ‘what goes around comes around’…
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Did anyone see that programme showing survivalists in America building underground bunkers stuffed with guns, food and water. If this gets as bad as it might never mind your bullion we’ll be back to the stone age and unless you are the Barclay brothers living on your own island you’ll be stuffed.
Wait for the Euro to collapse, American economy next then WW3 with China.
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yes they are known as preppers ( ithink).
some of these guys don’t even electricity, they are self sufficient.
very good programe .
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“Eurozone crisis may be good news, say finance experts”
That sounds exceptionally selfish careless and greedy, all the qualities that the island and many of its residents now boast. Not like this when I was younger.
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This person hasn’t got a grip on global issues.
A collapse in the EU will mean mass unemployment, rioting, and gross anarchy and could mean the army taking over control in some countries. An armed coup in an EU member state would mean automatic expulsion from the EU, if it is still functioning at that time, that is.
The UK is not immune as some seem to think. If the PIIGS go under then a quarter of the UK’s GDP goes with it. France will then be seriously exposed as well. The panic will then spread further afield. This is without any UK banks being sucked under due to European ties. The whole lot is inter-linked and just like a pack of cards will collapse once one of them gets displaced.
Sources are predicting a 40-60% cut in bank jobs in the UK over the next 18-24 months and this is without a collapse of the Euro.
The lack of understanding of the likely outcome is quite chilling.
Hedge funds were contributary to the 2008 crash. They actually dried up liquidity in some markets. They can also engage in short selling which exacibates the situation still further. However places like Jersey think there is nothing wrong with these sort of practices. I for one think short selling short be banned.
We are now going into 2012 which could well see a massive change in things as it appears critical momentum is being reached as more and more people wake up to what has been going on. It is time to get back to reality and the reality is that we can’t go on as we are.
As far as I am concerned finance has driven Jersey up a blind alley destroying its ambiance and quality of life and for what? A few jobs and a few pence in real terms. It is now extracting a higher and higher price to maintain its presence. At what point does it become a liability? I myself would say it has passed that point already, and it is time to move into other areas before the axe falls.
Those with the most have the most to fear from an economic collapse whilst those on the breadline in the third world won’t see much change to their lives, however the rich will be brought back to earth with a big jolt as their investments turn to dust, and their possessions get re-distributed around society.
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17 Annie Du Feu “Eurozone crisis may be good news, say finance experts”
That sounds exceptionally selfish careless and greedy, all the qualities that the island and many of its residents now boast. Not like this when I was younger.
Annie it’s business and it’s always been cut throat, put the rose tinted specs away.
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Geoff Cook’s words have made Jersey appear no better than a financial parasite, at a time when globally public repugnance towards financial parasites is at an all time high.
Have a word with yourself, Jerry.
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Exactly. Geoff Cooke needs to know when to shut up with his crass and insensitive comments. Saying comments like that while unemployment due to this crisis is ramping up, is to make easy ammunition for those people who think our financial services industry is a parasitic and exploitative concern whilst these meaningful size economies deal with real problems. Can the States of Jersey not put some sort of gag on this guy? His comments if picked up by the UK and European press will exacerbate the fermenting desire to just close us down.
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So its a case of **** on people for a few bucks then is it Jerry? This approach is reaping a grim crop. Yet still the idiots chase the money meanwhile the grim reaper is a sharpening his sythe.
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It is my earnest desire that the word “expert” should be deleted from the English language.
I mean no disrespect to Mr Cook as I am sure he is suitably qualified in his discipline – however I would prefer the word “specialist.
In addition I would like the word “celebrity” also deleted.
Adios Companeros
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(something flippant from me for once) Anyway, is an expert not a has-been drip under pressure?
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Shame so many readers don’t understand the difference between the word “may” and the word “will”. Far too many uncertainties – this “may” indeed be good for Jersey which is the point. Doesn’t mean that it “will” but that is not what Mr Cook has said. Is it?
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So waht is the point of his statement then? If it ‘may’ be good for Jersey then presumably it also may not be good for Jersey, but he did not say that – as usual only positive spin.
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Unbelievable might or will be good for Jersey they mean the same thing Mike 21
The point is
Boy oh boy our greed is taking us to disaster
Sodom Gomorrah and Jersey
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Jeremy, it might snow on Christmas Day. Hope you can tell the difference before you put the snow chains on your car.
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