18/03/2013
Agriculture funds said to be the most dangerous in Europe
P { margin-bottom: 0.08in; } According to a jury of European ecological and consumer organisations which has organised a competition to find the most dangerous financial products in Europe, funds which “speculate on food” received 71.4% of votes in category 2, while products that damage the environment for the poor and third parties took second place, according to the website dangerous-finance.eu, led by the German Sven Giegold, Green MEP. This includes the category of products such as the tracker fund DB Platinum Agriculture Euro from the Deutsche Bank group, as well as, in second place, the RBS Sands TR Equity Index Certificate, WDS Go Uranium Exploration Index Certificate, and Solit2 Gold & Silver.Funds of this type are potentially damaging to the environment and the poorest populations in the world, since it channels a large volume of capital to the commodity futures market, and may have a negative effect on the price of basic commodities.In category 1, 46.8% of votes went to CDS of public debt as the most dangerous products for consumers and investors, followed by credit cards with very high interest rates, loans in currencies payable at final maturity, and reversible convertible bonds.According to the website, these products could be forbidden by the banking supervisory authorities (EBA), the financial supervisory authority (ESMA) or insurance authorities (EIOPA), which since their creation have been authorised to ban such products. This authorisation has not yet really been used, since a prohibition on naked shorts was achieved with a specific law.
