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'Worst' financial products named and shamed
by Daniel Grote on Mar 18, 2013 at 09:03
Credit default swaps (CDSs) on emerging market sovereign debt and food speculation funds have been named Europe's worst financial products.
The vote involved nearly 2,000 people and was organised by German MEP Sven Giegold, the BBC reported.
The MEP said the European Supervisory Authorities, which have the power to ban financial products, needed to 'take action' following the poll.
The two worst products were taken from a list of eight finalists, split into two categories: those that harm the environment or the world's poor, and those that harm consumers directly.
Taking the prize for the most harmful product for consumers was CDSs on emerging market sovereign debt. Voter Will Martindale said in his submission: 'The issue here is that once a government gets into trouble, a CDS market can mean there's no way out. The same applies for emerging market governments too.'
Meanwhile Geld mi Sinn e.V and Mathias Winkler which submitted food speculation funds as the most harmful for the environment or the world's poor, said the products caused price increases of basic foodstuffs.
'These products threaten livelihoods of low-income earners and can even result in the death of those who cannot afford their food any more,' they said.
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