Brits Call For Financial Restructuring; LaRouche Says "This Is Fascism"

June 26, 2008 (LPAC)--With the global banking crisis far worse than the bankers will admit publicly, elements of the British Empire are pushing a plan for the extreme deregulation of the banking system by allowing the giant private equity funds to take over the banks. In a roundtable discussion reported in the July issue of the British Prospect magazine, Times of London financial writer Anatole Kaletsky asserts that the part of the financial system that has emerged "relatively unscathed" in the crisis is "the hedge fund industry", while George Soros speculates that "private equity funds will replace the investment banks as the dominant force in the economy." The same idea is raised twice in today's Wall Street Journal, first in an article reporting that the Federal Reserve has met recently with several big buyout firms and is considering altering/ignoring the rules to allow the private equity funds to buy big stakes in the banks as a way of providing the banks with badly needed capital. The Journal also carries an op-ed by two managing directors of the Carlyle Group--one of the institutions which met with the Fed--to argue that the private equity funds, with their more than $400 billion in available funds, could provide significant help to the banks, as long as a number of crucial regulations were jettisoned.

The idea that the banking system could be "saved" by turning it over to the worst of the fast-buck, hot-money pirates is preposterous; what is being proposed is actually the takeover of national banking systems by imperial speculators, as a step toward a dramatic concentration of banking into a handful of global giants. It is the exact opposite of the approach advocated by Lyndon LaRouche in his Homeowners and Bank Protection Act, in which the U.S. banking system would be rescued from the clutches of these crooks.

LaRouche himself denounced these proposals as pure fascism, noting that they were being pushed in the U.S. by the likes of the Rockefeller Foundation and New York Mayor Michael Bloomberg.