Russian Professor Exposes Dodd-Frank
June 6, 2013 • 8:45AM

Valentin Katasonov, a professor at the Moscow State Institute for International Relations (MGIMO) and well-known Russian author on international finance, today issued the latest in a series of articles on the global banking crisis. Titled "U.S. Banking System Prepares for 'Haircut' of Deposits," it appeared on the Russian National Line and the Movement for the Revival of Russian Science websites. Katasonov detailed the shift from "bail-out" to "bail-in," now that government bail-out funds have proven insufficient for the world's money-center banks. The experience of Cyprus is about to become universal, he wrote, citing measures adopted in New Zealand, Canada, and the EU.

Turning to the United States, Katasonov pointed out that "the USA was the first of all to adopt a law legalizing deposit 'haircuts,'" — and that is Dodd-Frank, the so-called Wall Street Reform and Consumer Protection Act. Under the subhead "The Discreet Charm of Dodd-Frank," he cited U.S. economist Lyndon LaRouche and articles in EIR as the source for his report on how, "as LaRouche emphasizes, this law puts into effect a decision taken by the world's financial elite in the heat of the financial crisis and rubber-stamped by the 2009 G-20 summit in London." Katasonov footnoted and quoted from the LaRouche PAC dossier "Dodd-Frank Kills. How the U.S. Joined the International Bail-In Regime," written by Leandra Bernstein and issued on May 26. He quoted LaRouche's warning: "The looting has gone far enough. The Dodd-Frank bill is a piece of treachery that has already claimed the lives of too many of our citizens, through the destruction of our economy, the continuing collapse of real employment, the gutting of our health-care system."

Katasonov concluded, "To stop this bacchanalia, Lyndon LaRouche and various Congressmen propose not only to abolish the Dodd-Frank Law (or at least the aspects legalizing the 'haircut' on deposits), but also to reinstate the Glass-Steagall Law." A major article by Prof. Katasonov on the history of Glass-Steagall banking separation and the current fight to restore it came out last week from the Strategic Culture Foundation. (See the forthcoming, June 7 issue of EIR.)

Prof. Katasonov has also been lecturing on these topics. On May 17, for example, he gave a talk to a meeting of the Trade Union of Russian Citizens group on "Cyprus — Trial Balloon for World Dictatorship." That would be a bankers' dictatorship, he explained. The Trade Union of Russian Citizens, founded by popular blogger Nikolai Starikov, advocates nationalization of the Russian Central Bank.

The May 28 LPAC release, "Dodd-Frank's Mass Murder Is Treason!" has also appeared in Russian on the websites of the (Russian) Institute of Higher Communitarianism and the Progressive Socialist Party of Ukraine, as well as several blogs and forums.