Worst bank scenario

Prologue
Introduction
OUR MOTIVES
Hester’s motives for writing this book
Wink’s motives for writing this book

PART 1 – BANKS AND THEIR SALES PRACTICES
Scene 1: Unexpected visit from the bank
Unjustified interest rate hikes
Hester’s memos: How it all got started
Milking Dutch business dry
Scene 2: And the farmer plowed on
An easy prey to outwit
Hester’s memos: ING summons
Scene 3: A day in the life of Theo Kocken
Cardano: a zero-sum game
Hester’s memos: Hester suspects fraud

PART 2 – THE YEARS PRECEDING THE CREDIT CRISIS AND THE CREATION OF AN INTERNATIONAL BANKING MODEL 2.0
Deregulation in the US, Europe follows suit
Banking Model 2.0: the worldwide business model until the credit crisis arrived
The risks of Banking Model 2.0
Balance sheet offsets and the collateral shell game
The role of securitization
The rise of international CCPs
Stricter accounting rules
The “secret” bank that runs the world
The end approaches
The eve of the credit crisis

PART 3 – TOWARD A NEW INTERNATIONAL BUSINESS MODEL: BANKING MODEL 3.0
Introduction
Bretton Woods 2.0
Euro Summit encourages joint economic policies
Recommendations of the De Larosière Group turned out to be nothing but window dressing
Banking Model 3.0: pimping collateral
The repo market: the grease that keeps Banking Model 3.0 running
Commonalities shared by Banking Model 2.0 and Banking Model 3.0

PART 4 – WORST BANK SCENARIO: THE GREAT BANK FRAUD
Introduction
Hester’s memos 2012–2014: Removal of margin accounts
Digital Pandora’s Boxes
Hester’s memos 2014: Joining forces
The smoking gun: The illegally passed Royal Decree
Hester’s memos 2015 – Part 1: Zembla and margin monitoring requirements
The gap in SNS/Reaal’s balance sheet
Hester’s memos 2015 – Part 2: Victory in court and AFM hires Cardano
The secret pension fund CCPs
Hester’s memos 2016: AFM report misused
ING moves collateral management to Bank Mendes Gans
Discovery of major balance sheet restatements at ING
The core of the fraud

PART 5 – HESTER’S MEMOS 2017-2021
Hester’s memos 2017: E-mails regarding the “free perk”
Hester’s memos 2018 – Part 1: Merel van Vroonhoven reappointed as AFM Chair
Hester’s memos 2018 – Part 2: SEC Notification and ING’s “Houston settlement” with Dutch public prosecutors
Hester’s memos 2018/2019: Danske Bank and Arthur Docters van Leeuwen
Hester’s memos 2019: Merel van Vroonhoven leaves the AFM
Hester’s memos 2020: Ignoring the courts’ determinations of contractual misrepresentation
Hester’s memos 2021–2022: Rosenmöller the Fixer

PART 6 – THE GLOBAL POWER BROKERS
European monetary integration and the introduction of the euro
How liquidity shortfalls lead to higher government debts
The call for EU-Bonds and Draghi’s discount window
EU-Bonds: a fresh source of liquidity!
The European Stability Mechanism
The Capital Markets Union (CMU)
Excessive Deficit Procedure (EDP)
A broken market mechanism and the European debt union
Unelected power brokers
Trust, they say, is hard-earned and easily lost

Conclusions
Epilogue
Acknowledgments
Glossary
List of Resources

APPENDICES
Appendix 1: Letter from EY to the IASB
Appendix 2: ING Group Annual Report 2007
Appendix 3: Modification of contracts and conditions at Rabobank, ING and ABN AMRO
Appendix 4: DNB’s refusal to provide text of risk noti