Causes and Solution

flipper58 RSS / 29.09.2008. u 21:54

Jerome a Paris: "the main reason European banks are also touched today is that finance is global, and the push for deregulation has not been any weaker in Europe than in the US - indeed, it could be argued that the EU was a convenient Trojan horse for the City to force other European markets to open up to the (mostly American) financial behemoths based in London and to push local banks to react by adopting, as much as they could, the same posture of short term profit seeking (only with less experience, and less access to international clients); in effect, Europe has imported the Anglo Disease"

To Save Wachovia, Restore Glass-Steagall

The Glass-Steagall Act of 1933 was one of the most
important banking regulations ever passed, as it prohibited
any commercial bank from engaging in investment banking
activities. As FDR told the House of Morgan: You can be
a commercial bank, or an investment bank, but you can't
be both. This was done to prevent a raft of abuses which
occurred in the 1920s and early 1930s, as the bankers saved
themselves at the expense of their customers and the public.
Glass-Steagall forced the House of Morgan to split into
two separate institutions, an act for which FDR has never
been forgiven by the bankers; but FDR was entirely correct,
as recent events have demonstrated. The banks began to
chip away at Glass-Steagall in the 1980s, and it was finally
repealed in 1999, after the illegal merger of Travelers and
Citicorp to form Citigroup in 1998.


LaRouche Endorses Call To Establish New ‘Pecora Commission'; Demands Paulson's Ouster

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LaRouche Endorses Call To Establish New ‘Pecora Commission'; Demands Paulson's Ouster

SEPT. 28, 2008 (LPAC)--Lyndon LaRouche today heartily endorsed House Resolution 1452, introduced on Sept. 17, 2008, by Representatives Marci Kaptur (D-Oh.) and Scott Garrett (R-NJ), "Establishing the Select Committee on Financial Bailouts." The legislation, which LaRouche dubbed a new "Pecora Commission," would create a Select Committee on Financial Bailouts, to investigate the recent actions of Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke and others, in engineering the taxpayers bailouts and bank takeovers of Bear Stearns, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, Merrill Lynch, Fannie Mae and Freddie Mac, American International Group, Lehman Brothers and others. The bill would empower the Select Committee to "investigate the role that political influence may have had on the oversight of the financial markets by both the Congress and the Federal regulatory agencies," and would require the Select Committee to submit a report to the House of Representatives, "no later than Dec. 31, 2008."

LaRouche applauded the proposal as a "new Pecora Commission," referring to high-profile hearings by the Senate Banking Committee between 1932-1933, which particularly targeted JP Morgan and Goldman Sachs, as leading Wall Street swindlers. The Committee was chaired by Sen. Duncan Fletcher (D-Fl.), but the lead prosecutor of the Wall Street scoundrels on the Committee was chief counsel Ferdinand Pecora. The hearings set the stage for the June 16, 1933 passage of the Glass-Steagall Act.

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