Return to the Pentagon

(Shutterstock)

 

In my 2011 book, Currency Wars, I gave a detailed description of the first-ever financial war game sponsored by the Department of Defense.

This financial war game took place in 2009 at the top-secret Applied Physics Laboratory located about twenty miles north of Washington, D.C. in the Maryland countryside.

Unlike typical war games, the “rules of engagement” for this financial exercise did not permit the use of any kinetic weapons such as bombs, missiles or drones.

The only weapons allowed were financial instrument including stocks, bonds, currencies, commodities and derivatives. Continue reading

Deutsche Bank Seeking Alternatives, Reforms to SWIFT

https://i2.wp.com/static.trunews.com/images/2016-09-07T145546Z_1_LYNXNPEC860ZW_RTROPTP_3_DEUTSCHE-BANK-RESTRUCTURING.JPG

Duetsche Bank Seeking Alternatives, Reforms to SWIFT A Deutsche Bank logo adorns a wall at the company’s headquarters in Frankfurt, Germany June 9, 2015.

 

Deutsche Bank is calling for a reform of SWIFT, the global financial messaging system which has faced criticism since February’s $81 million heist at Bangladesh Bank.

  • Germany’s flagship lender – which the International Monetary Fund has branded as the world’s systemically most risky bank for its numerous links to other lenders – is one of the biggest users of SWIFT. It is one of the first large banks to publicly urge changes.
  • SWIFT is only as strong as its weakest member, Deutsche Bank’s Chief Information Security Officer Hinrich Voelcker said on Wednesday, adding the bank was in discussions with SWIFT about the consequences of the Bangladesh heist.
  • “If trust in this system breaks down we all have a problem,” he said, without saying which specific reforms he believes are needed.
  • SWIFT is a member-owned cooperative, dominated by large Western banks, including lenders such as Citi , JP Morgan and BNP Paribas , which built the network decades ago.
  • It now connects more than 10,000 different financial firms and industry experts have said all of its users should have to meet a minimum security standard to continue accessing it. Continue reading