While the Banks control Congress, the American people remain the real losers.

“The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.” Andrew Jackson

It was 1836, and the central bank had attempted to take control of the Federal government, sensing the power the bank asserted over the nation and the influence its money contained over the destiny of its citizens Jackson vowed to shut the bank. He succeeded!

Now more than170 years later we find ourselves once more embroiled in a struggle against the banking interest over control of the US government and even the destiny of America as a nation. We are failing! And as we fail, we present a new decade of enslavement for not only ourselves but a season of global instability.

It was 1907, and 71 years after Jackson made the nation aware, when JP Morgan set in motion one of the greatest scams America could ever envision, the great panic leading to the passage of the Federal Reserve Act, where Wall Street took control of America.

Until this panic congress had been reluctant to allow the Banks to control the issuance of our money, mainly due to the constituency who at the time understood the real nature of Bankers and mainly held them to a high level of distrust. Morgan and his allies set in motion rumors that created an atmosphere of fright, the rumors were calculated to cause a run on New York’s prominent banks. Morgan then rode to the rescue bringing in some 100, million of Rothschild’s gold to save the day, his white horse made him a stunning figure, and continued his legend as the leading banker of his day.

But it didn’t stop there JP Morgan Jr. attempted the unthinkable, too actually over through the US government. It was 1934 and Morgan led and financed the failed attempt to over through the legitimate presidency of Franklin Roosevelt, though it failed it showed the true character of Americas leading bankers, and showed them as the real villains of American free enterprise, Morgan and his other allies such as chemical industrialist Irénée du Pont, their avowed purpose to form a fascist government.

Now that fight continues at the treasury where some want what Obama and his co-harts don’t, real Bank reform. Let’s face it Congress is completely dominated by Wall Street money and that money means influence amounting to control. Today Money buys loyalty, and there is little money on Main Street to even buy a hot dog. So the loyalty of congress and yes even the president himself goes to Wall Street insiders. Like JP Morgan and Goldman Sachs.

Deputy Treasury Secretary Neal Wolin reiterated Thursday that he would like to see the "Volcker rule" included in the bank reform bill now being finalized, and reconciled in congress, the thrust of the “Volcker rule” would separate banking from proprietary trading, a revisit to Glass Steagall. Since the FED under Greenspan and as he was directed by his association with JP Morgan, Glass Steagall was dumped by the FED and later by Congress and Clinton.

Yes to reinstate Glass Steagall would be a beginning, but there is so much more required. And America sadly lacks the stomach for a real fight.

Bank Reform

JP Morgan Chase, Goldman Sachs, Bank of America, Citigroup and Wells Fargo invest over 6 million dollars to defeat major bank reform.

The nation's five largest and (as consumers feel), least credible banks which currently dominate the derivatives market; are in Washington armed with carpet bags full of cash. They have marshaled a contingency of trade groups, paid lobbyists and their own executives to convince senators that excluding banks from the derivatives business would make markets less safe.

Just how, is a curious oddity?

The banks reason, that the derivatives are a way of protecting their investments from failure, as they lay off the question of performance on third parties, like AIG for example, well that may be a bad example! But we get the point.

But the notion of excluding banks from the derivative market isn’t the issue. The issue is regulation and transparency of this 100 trillion dollar market.

The financial legislation proposed by the Obama administration and as passed by the House would require “most derivatives” to trade on public exchanges, in the belief that a transparent marketplace will be safer and cheaper. The scope of the exchange trading requirement has been the focus of the debate for months. Opponents argue that the bill would limit the industry's ability to customize derivatives to match the needs of clients. But in most cases they are their own client, except when they sell an instrument that an investor questions.

But, so far it has been the banks that have made small fortunes from the derivatives market, the most recent reminder AIG counterparty contracts with these same 5 banks receiving a concealed bailout from the Obama administration, and timothy Geithner’s requirement that AIG pay the banks 100 cents on the dollar. (Another story here)

According to the Office of the Comptroller of the Currency, Banks reported $22.6 billion in derivatives revenue in 2009. No doubt they used taxpayer bailout money to invest. Goldman Sachs was paid $13bn alone from AIG in 2009

Derivatives are contracts whose value is determined by something else. Trading in derivatives is dominated by these five banks, they were largely used in connection with Mortgage securitization instruments and were a form of insurance against a mortgage default, it is because of this “insurance” that the banks were made whole after a borrower defaulted, and it is because of these same instruments that the banks have NO incentive to work out a loan modification with a defaulting borrower, as they are made whole by these CDS’s (credit default swaps)

The five banks together have assembled more than 130 registered lobbyists, including 40 former Senate staff members and one retired senator, Trent Lott to water down and in most cases, (after their success in defeating the most concerting elements of the reform bill circulating congress), to defeat the latest round, unregistered Derivatives. Included in the list are also former staff members for the Senate majority and minority leaders, the chairmen and ranking members of the banking and finance committees, and more than 15 other senators.

The real issue and the one the banks are prepared to fight no matter how much money they have to throw at our congress, is control of their industry, this is something they will not tolerate, and after all they “are” the real masters of Washington .

Financial Reform

Hundreds of lobbyists for banks and Wall Street, working with Republicans, have been working to block the reform bill currently winding its way through congress.

If ever bank reform is needed it’s now!

But Wall Street has not come to grips with the possibility that if a bill could pass in its current form, Wall Street will be restrained form gambling with our money! So far the banks that were provided Taxpayer assistance to prevent their filing bankruptcy have accumulatively invested more than $9 million to “bribe” congress to fight this bill.

A recent Fox report says, "About 25 Wall Street executives, many of them hedge fund managers, sat down for a private meeting with two of the most powerful Republican lawmakers in Congress: Senate minority leader Mitch McConnell of Kentucky, and John Cornyn, the senior senator from Texas who runs the National Republican Senatorial Committee, one of the primary fundraising arms of the Republican Party." (View the broadcast) http://www.foxbusiness.com/story/markets/industries/government/street-execs-pols-earful-financial-reform/

The Banks and their lobbyists are aligning themselves with the republican constituent in congress. Believing they are their best hope of watering down a bill that seeks to place them under control.

Under attack appears to be several important areas of concern that the Republicans, under the Banks influence will fight to their death. Those areas are (i) a 50 Billion dollar fund to break up “too big to fail banks” (ii) visibility for the lucrative derivatives market, and (iii) on how to protect consumers and (iv) how to set limits on previously unregulated exotic instruments such as derivatives.

Lobbying spending to block the bill by some of the biggest firms:
JP Morgan Chase & Co.; First quarter, 2010: $1,510,000 First quarter, 2009: $1,310,000 Citigroup: First quarter, 2010: $1,310,000, First quarter, 2009: $1,250,000;
Credit Suisse. First quarter, 2010: $1,190,000, First quarter, 2009: $470,000;
Goldman Sachs First quarter, 2010: $1,150,000, First quarter, 2009: $670,000
Wells Fargo; First quarter, 2010: $1,020,000, First quarter, 2009: $700,000;
Bank of America, First quarter, 2010: $940,000, First quarter, 2009: $820,000,
Morgan Stanley, First quarter, 2010: $810,000, First quarter, 2009: $540,000;
State Street First quarter, 2010: $380,000, First quarter, 2009: $210,000

CNN during a recent panel discussion described the lobbying process on Capitol Hill as the "Blob." Congressional staffers and lobbyists are the ones hashing out the final details of the financial reform bill. These same Congressional staffers and their bosses are indebted to the lobbyists, having accepted tens of millions in campaign contributions. There is absolutely no adversarial relationship on capital hill - everybody is on the same side of the page - and rarely is anybody at the table even an elected official.

Think about this, if the banks and those beholden to them in congress don’t want this bill passed, we do!!!