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LaRouche: Use Citibank Breakup
To Rebuild National Banking System

Jan. 19, 2009 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).

Lyndon LaRouche called today upon the incoming Obama administration to use the breakup of Citibank into two parts, as announced on Friday, to take a crucial first step toward salvaging the national banking system by protecting the legitimate and necessary functions of chartered banks, as he had originally called for that in his Homeowners and Bank Protection Act of 2007.

LaRouche said that the Obama administration should move to separate out and protect all the chartered commercial banking functions of the mega-banks, like Citibank, and let the other components be up for grabs. It is time to put an end to the idea of bailing out foreign banks, through taxpayers' money, while allowing American banks to be dumped.

There are a number of other big American banks, LaRouche continued, beyond Citibank, that are going to have to be put through the same dismantling, with protection for the chartered bank functions. By putting two or three of the big American banks through this type of reorganization, under Federal protection of the chartered functions, we can build a system that is, at its core, a national banking system. This is an urgent step that must be taken, right away. The incoming Obama Administration can act on this initiative on day one. The breakup of Citibank is the precedent for how to proceed.