Geopolitics Magazine March - April 2015 ( 8th Edition ) | Page 89

Geopolitics & Daily News Magazine

The Fifth TRIPOD
But the next question is how we have reached that depiction and how the TRIPOD Beta trees evolved.
To begin with, the story plot includes in its beginning, the Lehman Brothers collapse and also the crisis
after the Subprime Mortgages, which definitely can be identified as a change agent for our Object, the
European Union. Unfortunately the situation further developed and finally a number of Banking
Institutes, mainly from those that share the characteristics of systemic Banking Institutions like
Lloyd’s, HYPO, BNP Paribas, Dazia, Aspis Bank ) were found in the unpleasant situation of facing a bail
out for covering up their debts, which luckily for them, was executed with National funding, which
was added to the involved countries external debt.
Things might have been different if only a mechanism for sufficient monitoring of external financial
environment was in place that accounts for a Missing Barrier. Not only that, but Maastricht Treaty
under the article 4a had set the legal base for the establishment of the European Central Bank and also
of the European System of Central banks (ECBS) but unfortunately ECB lacks the power of FED in the
States and ECBS is just an advisory group. Those two missing Barriers were adding to another two as
described by the fact European Union at the time of Lehman’s burst totally lacked a preventive
procedure for prudential supervision and additionally a mechanism to whom the European Union could
delegate the financial crisis management for the aggregate of the Single Market.
Not to forget the failures that come evidently from a series of European Bodies and legislator
framework ,starting from Basel II, which was proven weak, of the Committee of experts, the European
Commission, ECFIN, also the European Commissioner of Economic& Monetary Affairs himself, the
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