Education Minister Evarist Bartolo has once again attacked MFSA chairman Joe Bannister, whose position is, according to the minister, ‘untenable’. After a series of attacks via the social media, this time Minister Bartolo likens Joe Bannister to Marlon Brando, who is mostly known for his playing of a mafia boss in “The Godfather”, who “puppeteers his pawns at the MFSA in order to please his friends in the industry and those in the political sphere.
Once again, the minister took to Facebook to express his views.
This is his full post.
"Joe Bannister, the Chairman of the Malta Financial Services Authority (MFSA), Malta’s single financial services regulator, is disregarding generally accepted standards on independence of financial supervisors set by the International Monetary Fund and the European Central Bank, by continuing to be a director of collective investment schemes in the Cayman.
"In addition, it is well established that Bannister leads regulatory initiatives which are exclusively in the interest of the financial industry and which are exposing Malta and investors to great financial risk. Bannister is too close to big consultancy firms in the financial industry to exercise judgment and supervisory powers independently without being improperly influenced by these interested third parties. Moreover, supervision under Bannister is weakening by the year, with more financial scandals involving Malta. Bannister’s conflicts of interest impinge on the MFSA’s operational independence. His interference in issues of regulation, supervision and enforcement, damage the MFSA’s integrity.
"Industry participants have brought to my attention that the application of supervisory processes at the MFSA depend on whether you are Bannister’s friend (you have to praise Bannister to succeed!!). It is well known in the financial industry that you should call Bannister if you want your application for authorisation to be pushed on the fast lane. Similarly, there have been instances where industry participants have managed to avoid enforcement action or publication of such action on the MFSA web-site (required in terms of MFSA policy http://www.mfsa.com.mt/…/AdministrativeMeasuresPenalties.as…) by asking Bannister to intervene.
"Like Marlon Brando, Bannister puppeteers his pawns at the MFSA in order to please his friends in the industry and those in the political sphere. This is a form of crony and I’ll scratch yours type of capitalism from the third world, which has made Bannister indispensable for his friends in the industry and politics. No wonder they eagerly pronounce themselves in his favor when concerns are expressed regarding the way Bannister is leading Malta’s financial services regulator.
"It is inappropriate and ethically incorrect for Bannister to be a director of collective investment schemes in the Cayman while being the Chairman of the MFSA. It is even more unethical that Bannister is leading the MFSA like a personal fiefdom.
"Chairman Bannister’s position is untenable," Mr Bartolo wrote.
Last week, after another of his attacks on the MFSA chairman, The Malta Independent had sent questions to Mr Bannister who have, so far, remain unanswered.