LaRouche: "A Hamiltonian National Bank Act Is Needed"
February 26, 2009 (LPAC)-- It is reported that corporations are pulling money out of Citigroup, and perhaps some other banks, in the light of worries about those banks' survival and the fact that the FDIC generally only guarantees deposits up to a $250,000 limit. But, the report went on, Geither is formulating his shifting bail-out schemes with no regard to this reality.
"Geithner is focussed on special interests, which is Wall Street," LaRouche responded. "He's blinded to the reality of the national interest. We need the HBPA now. All reform of the system is built around the central theme of the HBPA. Say: `It always was the only solution. If you want to efficiently defend the American economy, this is how to do it.' Wall Street is dead; it should be given a decent burial."
Extension of the FDIC guarantee to all legitimate bank deposits is implicit in the HBPA. Nothing has to be added; you can simply explain to people that this is so. Although a minor clarification can be added to the text that the freeze on foreclosures applies to "owner occupied" homes, which was always the intention.
On the major institutions, including Citigroup and AIG, where more Federal bail-out money has already been put in than their entire value, and they've effectively been bought up by the Federal government, LaRouche said, "Yes, we have to introduce another element at this point, which is Hamilton's concept of a National Bank." In such situations, these shares or companies will be held as assets of the National Bank, until they're ready to once again become private entities. A Hamiltonian National Banking Act is needed. Some of these corporations will be placed in temporary receivership, to either be liquidated, or re-established. After we've written off all of the trash on the books of the banks, beginning with the derivatives, there will still be legitimate obligations on their books to the Federal government, that will now represent net assets on the books of the National Bank, until they are retired.
What we need is a National Banking Reform Act, to provide for these kinds of circumstances of receivership. Remove the crap, write it off, and then sort out the still-existing legitimate obligations, and put them on the balance sheets of a Federal government entity, which can use them against which to issue credit and otherwise, until they are retired.
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