Building global anti-corruption regime.

In the documents of G20 leaders in Seoul it was recognized that not all countries have acceded or
have ratified and have implemented rules the UN Convention against Corruption. Before the G20
summit U.S. banks have cut business with embassies and with government entities from 40
countries (16 from Africa), because were unclear purposes and origins of payments. Countries are
not disclosed. In the UK in April 2011 year comes into force on a similar law for foreign companies
in the UK and for British companies abroad. In the Russia there is parliament that refused to ratify
the part on illegal enrichment the UN Convention against Corruption. The mayor Moscow has
required from officials to publish in the net a list of enterprises which want to get work permits for
foreign employees with goals of their stay. Wait and see.

Capital outflow implies higher taxation for the poor.

In the Central Bank Russia have upgraded their outlook for capital outflow 2010 year. The Federal
State Statistics Service Russia says about the reduction of foreign investment into the Russian
economy on 13.2% in first 9 months of 2010 year. The Federal Customs Service Russia said that
70% of foreign trade enterprises have signs companies-by-night related to the fraud. Public money
are stealing and then disappearing without tax in the offshore economies. The authorities recognize
the federal budget deficit and the pension fund. The officials offer to increase taxes for those who
do not has the capital and not to increase taxes for those who has a capital or who steal public
money. That explains the situation where 90% of disputes between businessmen from the Russia are
being exercised the courts other jurisdictions. To this we must add that the Russia is in the top ten
holders of long-term the U.S. Treasury bonds in a size 120-130 billion the U.S. dollars. Government
bonds of developed economies have a low yield. But current federal budget deficit Russia already
over 100 billion U.S. dollars in comply with a law. How long this would hold exchange rate the
Russian currency?

Why the capitalization of banks is growing but no dividends are paid.

In Russia the dividends by ordinary shares of profitable banks have being announced, but almost
never pay. That's not to mention the fact that many Russian banks have no listing of stock
exchanges. This is a fact even If there are listing common stock largest banks, net profits and quoted
prices are increasing. Thus, there is the economy, where strong growth stock capitalization of
ordinary shares transformed into zero-dividend. Here speculative investors get a benefit from trade.
Now may understand the intention of the U.S. banks obtain permission from the U.S. Federal
Reserve to raise dividends to investors. So the U.S. Federal Reserve intends to conduct a stress-
testing of the largest banks in Wall Street, to assess their stability on requirements to capital and
liquidity the Basel III. USA Today informs that the federal government has already begun a criminal
investigation against 50 bankers from bankrupted banks. And this does not include civil actions by
the Federal Deposit Insurance Corporation against 80 other bankers.

GDP does not account shadow cash turnover and hidden capital outflows.
Small businesses have suffered like the investment banks which bankrupted with money investors.
USA Today informs about hundreds small businesses from Iowa in which no remitted money on
retirement accounts and health care of their employees. The government is suing against such
employers, who steal money of employees. Federal income tax rates in the U.S. for the poor
(incomes from 8375 to 16750 U.S. dollars a year) 10% per year and over 10% to 35% for middle
class on a progressive scale En.wikipedia.org In the U.S. there are still states where no income tax.
Yet there are tax break which reduce tax (Bush tax cuts). It is likely that in the U.S. tax system
would no happen a big change in future Money.cnn.com In Russia the income tax of 13% regardless
of income. The Russian authorities increased tax rates on social contributions from 26% to 34% on
a regressive scale only for the poor from 1 January 2011 for reduce deficit pension fund. This is no
way to prosperity folks because the corrupted officials supports the shadow economy. Therefore,
GDP statistics no shows a size of shadow economy.
How private bankers helped to evade tax in Brazil. Time will tell there is another place in the
world where this could happen.
Bloomberg.com tells the story of how the Brazilian authorities found the illegal scheme of evasion
of income tax (27,5%), when with the help of private bankers and of local brokers were illegally
exported $ 150 billion onto hidden overseas accounts. In the schemes have been implicated private
bankers Merill Lynch, Credit Suisse Group AG, UBS AG, part of whose has been condemned, and
others under investigation. The essence of the scheme was that private bankers have transferred
money in favor of local resellers in Brazil, who were holders of foreign accounts, and then they
have transfered the money from these accounts to offshore accounts of tax evaders. This scheme
was without of wire transfers. Time will tell there is another place in the world where this could
happen.

The declaration of the G20 has worked as a truth serum.

The G20 leaders acknowledged in a declaration that the shadow banking system remains one of the
areas in which there is no progress because of loopholes in the regulation and supervision. Maybe
it's coincidence, but the Russian Central Bank announced publicly that should condemn
Mezhprombank in a deliberate bankruptcy. Gazeta.ru describes the scheme of withdrawal of the
Russian assets Mezhprombank to offshore accounts in the Switzerland and in the Cyprus through
companies-by-night (more than a hundred). Bad loans the companies-by-night were secured by
promissory notes from companies the British Virgin Islands. Mezhprombank remitted money as
loans companies-by-night out of the money the central bank ($ 1 billion). It is noteworthy that the
beneficiary no forgot to list on dividends another part the money the central bank. Confuses one
thing, why do the authorities kept silent for so many years. This an example may confirm that this is
a mass phenomenon in the financial system, but no exception. The U.S. press regularly reports on
corruption in deals of U.S. companies with their the Russian counterparts.

When turnover corrupt officials more than the #profit of the banking system.
In Russia in the current year a shadow turnover with public money of budget, estimated of
controllers might grow up to one trillion rubles or 33 billion U.S. dollars. To understand this
phenomena better to compare this assessment with net profit after tax of U.S. banking system in
2009 in the amount of 19.2 billion U.S. dollars according to the OECD data.

Investigation long-term ability an auditor no disclose.

Guardian reported that British regulator will conduct an inquiry work of auditing group KPMG
from 1997 to 2007 years in BAE Systems (producer weapon). Already known and disclosed the
scheme of payments through shell companies from offshores to bribe foreign government. KPMG is
being criticized for no disclosing such facts. Still another curious example. There is company under
the same brand in Moscow. This company worked in banks which partly belongs to local authority.
Recently the mayor of Moscow was sacked due to mistrust. The new mayor has announced the
revision of financial participation in share capital of commercial entities.
http://www.guardian.co.uk/business/2010/oct/25/kpmg-bae-systems-investigation

Why not check the information from external sources?

Usually, on web pages of world's stock exchanges have a record of that stock exchange not liable to
users financial statements of issuers of stocks and bonds. Bankruptcies have shown that neither the
authorities nor shareholders, nor the auditors are unable or unwilling detect abuse by financiers for
several years. For example, in developed markets, it is Madoff case in the past and recently with the
foreclosure of mortgages. In the emerging market authorities are waiting when the assets might
depreciate by more than 90%, and then revoke the licenses of banks. In all cases, everything had
been available from external sources about fraud but no one used that.