Forgotten Man, Forgotten Bankers
June 4, 2012 • 2:03PM

by Leandra Bernstein

Last week saw the victory of Kesha Rogers in the Texas 22nd district primary election. Kesha won that election on the platform of impeaching Obama, saving NASA, and restoring the 1933 Roosevelt era Glass-Steagall legislation in its original form. This past week also saw an outpouring of support from community banking associations and community bankers across the country, reached during an intensive mobilization by LaRouchePAC representatives. In addition, the LaRouchePAC presence at the Virginia and Massachusetts democratic state conventions, and the Washington state democratic and republican conventions, fueled the growing support for implementing Glass-Steagall (HR 1489) and forcing Obama out.

As it stands, there are currently 63 cosponsors for Marcy Kaptur’s Glass-Steagall Act. Yet aside from signing their names, most of those cosponsors have not organized for the success of the Act. In states and regions whose legislators are backing HR 1489, the community bankers, a critical base of support, who would be directly responsible for implementing the Act, had been largely left in the dark prior to this past week. Many community bankers and community banking associations were previously unaware that a bill to return to Glass-Steagall was being proposed, though all were familiar with the legislation and the catastrophic effects of its repeal.

The support for Glass-Steagall is immense within these layers, as is the disappointment and hatred of the pro-Wall Street Dodd-Frank financial reform bill. One community banker noted that while everyone talks about how important community banks are, nothing is being done for them. Congress is making it harder for them to do business, and doing anything and everything to keep the largest banks solid.

The Independent Community Bankers of America (ICBA) have often been a voice of sanity in the increasingly insane world of banking. Driven by community growth, as opposed to double-digit rates of investor returns, community banks work together with local elected officials, businessmen, farmers, and labor leaders to improve the stability of local and regional economies. In October of 2009, former ICBA chair, R. Michael Menzies, testified to the House Financial Services Committee asking them to consider reinstating Glass-Steagall. Menzies suggested,

ICBA, which opposed the repeal of Glass-Steagall when it was first introduced, believes Congress should consider reinstating the Glass-Steagall Act... [E]ven though there are theoretical firewalls that separate commercial from investment banking activities, in times of stress, it is virtually impossible to keep them distinct. Reinstating Glass-Steagall would serve the dual purpose of reducing risk and forcing institutions to downsize.

Outside of the usurious ideas of “creative financial instruments” popular on Wall Street and among high-paying bank lobbyists on Capitol Hill, there is much greater receptivity to actually creative financing solutions. After a positive response from a regional ICBA head, a proposal went out to another ranking member of the ICBA on how to recapitalize community banks under a credit system, driven by investments into the continental infrastructure program, NAWAPA XXI. The informal proposal suggested state subscriptions to the capital stock of a NAWAPA XXI Authority. Under this plan, “states could subscribe with their debt, or purchase NAWAPA XXI Bonds, and free their current books of interest payments, while the Authority could use the debt as capital (since the interest and principal will eventually be paid), and use this to purchase supplies for dams, and contract with steel, cement, and machine manufacturers.” (For more see Section III and Appendix II of the NAWAPA XXI Report.)

The weight of four years of failed bailout policies is crushing, but can now be leveraged to push the emergence of a new system of organization for national economies. This is felt at the state and local levels, as reported by members of LaRouchePAC and the LaRouche Democratic Candidates who attended the Virginia and Massachusetts state democratic conventions, as well as the Washington state democratic and republican conventions. In Washington State, the support for Glass-Steagall was exemplified when Dave Christie, congressional candidate for Washington’s 9th district, was invited to the podium to speak at a caucus meeting where the chairman gave him virtually sole credit for the successful introduction of a Glass-Steagall resolution.

On top of the broad support for Glass-Steagall at each of the conventions, there has been an institutional shift within the democratic party to box out Obama. In Virginia, democrats were mobilized by Senator Jim Webb, who focused his speech on his recently introduced piece of legislation requiring the President to seek Congressional approval before engaging the U.S. military in humanitarian operations. The overtly Hitlerian policies of the President represent the breaking point between Democrats and Obama supporters, or better said, the survival of the United States or its destruction.

Last week saw these political breakouts catalyzed by the extensive LaRouchePAC mobilization across the country. The victory of Kesha Rogers in Texas is a testament to the success of the LaRouche policy platform. This week the mobilization continues and escalates with the Tuesday primary election of Diane Sare, candidate for New Jersey’s 5th congressional district.

LaRouchePAC will be extending our organizing efforts in the coming days and weeks. As a supporter of LPAC, you are encouraged to contribute and participate in every way possible to secure a just-in-time victory for the United States.

Contact LaRouchePAC to volunteer or make a financial contribution! Call LaRouchePAC at 800-929-7566, or email us at [email protected]

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