This document discusses research on the global network of corporate control. It finds that a small group of companies, mainly banks, control a large portion of the world's wealth. A "super-entity" of 147 tightly-knit companies control over 40% of the total wealth in the network. The high level of interconnection between these companies makes the global economy fragile, as the failure of one company could propagate through the system and cause widespread failures. The document also raises issues with India's Unique Identification (UID) system, arguing it could propagate fraud and make the banking system vulnerable if various responsibilities are not clearly defined.

1. The Future of Risks of Banking
Inaugural Address at Bankers Meet
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2. Occupy Wallstreet
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3. Occupy Wallstreet
• Occupy Wall Street is a people-powered
movement that began on September 17, 2011 in
Liberty Square in Manhattan’s Financial
District, and has spread to over 100 cities in the
United States and actions in over 1,500 cities
globally.
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4. Why Occupy?
• #ows is fighting back against the corrosive power
of major banks and multinational corporations
over the democratic process, and the role of Wall
Street in creating an economic collapse that has
caused the greatest recession in generations.
• The movement is inspired by popular uprisings in
Egypt and Tunisia, and aims to fight back against
the richest 1% of people that are writing the rules
of an unfair global economy that is foreclosing on
our future.
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5. Web of ownership
• From Orbis 2007, a database listing 37 million companies and
investors worldwide, Swiss researchers pulled out 43,060
TNCs and the share ownerships linking them.
• They found a core of 1318 companies with interlocking
ownerships had ties to two or more other companies, and on
average they were connected to 20.
• Although they represented 20 per cent of global operating
revenues, the 1318 appeared to collectively own through
their shares the majority of the world's large blue chip and
manufacturing firms - the "real" economy - representing a
further 60 per cent of global revenues.
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6. Vitali S, Glattfelder JB, Battiston S (2011) The Network of Global Corporate Control. PLoS ONE 6(10): e25995. doi:10.1371/journal.pone.0025995
http://www.plosone.org/article/info:doi/10.1371/journal.pone.0025995
connected 1318
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7. superowners
• When the team further untangled the web of
ownership, it found much of it tracked back to a
"super-entity" of 147 even more tightly knit
companies, mainly banks and other financial
institutions, - all of their ownership was held by
other members of the super-entity - that
controlled 40 per cent of the total wealth in the
network.
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8. Superconnected 50
1. Barclays plc 2. Capital Group Companies Inc 3. FMR
Corporation 4. AXA 5. State Street Corporation 6. JP
Morgan Chase & Co 7. Legal & General Group plc 8.
Vanguard Group Inc 9. UBS AG 10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP 12. Deutsche Bank
AG 13. Franklin Resources Inc 14. Credit Suisse Group 15.
Walton Enterprises LLC 16. Bank of New York Mellon
Corp 17. Natixis 18. Goldman Sachs Group Inc 19. T Rowe
Price Group Inc 20. Legg Mason Inc 21. Morgan Stanley 22.
Mitsubishi UFJ Financial Group Inc 23. Northern Trust
Corporation 24. Société Générale 25. Bank of America
Corporation 26. Lloyds TSB Group plc 27. Invesco plc 28.
Allianz SE 29. TIAA
29. TIAA 30. Old Mutual Public Limited Company 31. Aviva
plc 32. Schroders plc 33. Dodge & Cox 34. Lehman
Brothers Holdings Inc* 35. Sun Life Financial Inc 36.
Standard Life plc 37. CNCE 38. Nomura Holdings Inc 39.
The Depository Trust Company 40. Massachusetts Mutual
Life Insurance 41. ING Groep NV 42. Brandes Investment
Partners LP 43. Unicredito Italiano SPA 44. Deposit
Insurance Corporation of Japan 45. Vereniging Aegon 46.
BNP Paribas 47. Affiliated Managers Group Inc 48. Resona
Holdings Inc 49. Capital Group International Inc 50. China
Petrochemical Group Company
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11. Making the economy fragile
• Failure of one node causes similar failures in linked
nodes that propagate throughout the
system, creating large scale collective failures.
• The global banking network's activities are directly
responsible for the majority of the financial woes
that have befallen the global community, especially
since the 2008 events that have put the financial
system into meltdown mode.
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12. Making an economy fragile
• Connecting hundreds of unconnected
networks.
• Few nodes in control of entire network.
• Many nodes connected to 2nd or 3rd order
nodes resulting in auditors nightmare.
• Amplifying fraud through networks.
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13. The UID Initiative
• Multiple ID’s linked by UID.
• Few foreign companies control all nodes.
• Many sub-registrars and even more enrolling
agencies with no accountability resulting in
auditors nightmare.
• Fraudulent ID’s propagate through the system.
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14. Registration of UID

15. Issues of UID Registration
• Who certifies each UID, KYC?
• Who audits each UID, UID
enrollers, registrars?
• Who owns the UID?
• Who is responsible for privacy?
• Who is responsible for security?
• Who has legal liability?
• Who is responsible for frauds?
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16. Using UID to Open Bank AC

17. Issues of UID Bank AC
• Who certifies each Bank AC?
• Who audits each Bank AC?
• Who owns the Bank AC?
• Who is responsible for privacy?
• Who is responsible for security?
• Who has legal liability?
• Who is responsible for frauds, fake ACs?
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18. Using UID for Cash Transfer

19. Issues of UID Cash Transfers
• Who certifies each Transfer?
• Who audits each Transfer?
• Who owns the Money?
• Who is responsible for privacy?
• Who is responsible for security?
• Who has legal liability?
• Who is responsible for frauds, money
laundering?
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20. Using UID to Authenticate

21. Issues with UID Authentication
• Who certifies each Authentication?
• Who audits each Authentication logs?
• Who owns the the Logs?
• Who is responsible for privacy?
• Who is responsible for security?
• Who has legal liability?
• Who is responsible for frauds, fake
ids, identity theft?
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22. The UID issues
• Assumption: Uniqueness of UID.
• Assumption: Any UID corresponds to only one real person.
• Private party “verification” and “KYC” in UID numbers.
• No verification in cash transfers.
• More than 1.2 billion UIDs on completion.
• Assumption: UID or identity will result in financial inclusion.
• UID solves the gap of 18,950 rural branches to service 593,731 villages or
31 villages to a branch.
• UID will accomplish what banks have failed to do in 66 years: 40,000
persons per rural branch if they were reachable.
• UID will solves the gap of 38,592 branches to serve 5,161 cities and towns.
• UID will accomplish what banks have failed to do in 66 years:
7,500 persons per urban branch if they were evenly distributed.
• Assumption: Fraud free transfer of trillions of Rupees in subsidies per year.
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23. The Future of Banking
• Propagating extremely high risk to banks.
• Creating a very fragile economy.
• Making India vulnerable to financial terrorism.
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