Isherwood: There is already a solution to ‘Too Big To Fail’ banks—Glass-Steagall!
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Citizens Electoral Council of Australia

Media Release  Thursday, 12 September 2013

Craig Isherwood‚ National Secretary
PO Box 376‚ COBURG‚ VIC 3058
Phone: 1800 636 432
Email: cec@cecaust.com.au
Website: http://cec.cecaust.com.au
 

Isherwood: There is already a solution to ‘Too Big To Fail’ banks—Glass-Steagall!

Citizens Electoral Council leader Craig Isherwood today branded as a “liar” Bank of England Governor Mark Carney, for saying that until all nations enact Cyprus-style “bail-in” laws to steal deposits to prop up banks, the problem of “Too Big to Fail” [TBTF] banks is not yet solved.

Carney doubles as the boss of the Financial Stability Board based at the Bank for International Settlements in Switzerland. The FSB is dictating the moves in each member country of the G20, including Australia, to legislate bail-in powers so that when a bank fails in the next financial crisis, its customers will have their deposits seized in order to keep the bank going.

Last week Carney briefed the media ahead of the G20 Leaders’ Summit in St Petersburg, declaring that the FSB and G20 are still “years away” from a solution to the problem of TBTF banks. An FSB report that Carney released on the same day stated, “If we are to resolve … the problem of TBTF, further action is required from G20 countries, the FSB and other international bodies.” According to Canada’s 2 Sept. Globe and Mail, “That includes each country committing to introducing legislation enacting the FSB’s proposals and improving co-ordination between G20 members that have already done so, the report said.” [Emphasis added.]

Importantly for every either dishonest or ignorant Australian politician who denies to their constituents that bail-in is planned for Australia, Carney praised Australia as one of the nations complying with the FSB’s demands!

“When Mark Carney says there is no solution yet to TBTF banks, he is a liar,” Isherwood said. “A solution is not years away, because we already know what to do—enact Glass-Steagall.

“How stupid does Carney hope we are?” he demanded. “TBTF banks didn’t exist until corrupt Wall Street bankers and politicians in 1999 repealed the Glass-Steagall Act, in place since 1933, which had kept Wall Street investment banks completely separate from the commercial banks that held the deposits of everyday people and businesses, so that they weren’t too big to fail. If a Wall Street bank’s financial gambling got it into trouble, it could close without threatening the financial security of the population.”

Isherwood continued, “Carney knows there is a huge push to restore Glass-Steagall. He knows that some of the very bankers involved in repealing it, including former Citibank boss Sandy Weill, are calling for it to be restored. He also knows that there is a bill before the U.S. House of Representatives to restore it, and two bills before the U.S. Senate.”

“Carney and the Bank of England/BIS/FSB crowd have no intention of solving TBTF, because if they did, they would push for Glass-Steagall,” he insisted. “In fact they oppose Glass-Steagall, because their priority is to ensure ‘financial stability’ only for the $1.4 quadrillion global derivatives gambling casino. They are trying to protect the parasitical speculation that loots nations and families of the financial resources needed for the industries and infrastructure that underpin our living standards. They hate Glass-Steagall because it will wipe out the derivatives bubble and the banks that gamble in it, and because it puts national governments who are answerable to their people back in charge of their respective financial systems, instead of technocrats like Carney.”

Isherwood concluded, “Australians should be outraged that Carney is praising Australia for moving ahead with bail-in. It proves that the dozens of MPs who in recent weeks assured concerned constituents that nothing is planned have lied. The only way to stop it is to join the CEC, which is leading the fight to both expose and stop the bail-in legislation that under the FSB’s supervision is currently being written in Treasury, and to instead force Parliament to enact Glass-Steagall in Australia, by splitting up the TBTF ‘Big Four’ banks.

“The election is over, but nothing has changed. The politicians will only stop bail-in if there is an almighty public backlash, so I urge all Australians—join the fight.”

What you can do:

Click here to order a free Glass-Steagall organising pack and find out what Glass-Steagall would mean for Australia.

Click here to join the CEC as a member.

Click here to refer others to receive regular email updates from the Citizens Electoral Council of Australia.




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