LaRouche Endorses Call To Establish New ‘Pecora Commission’; Demands Paulson’s Ouster
September 28, 2008 • 3:15PM

LaRouche Endorses Call To Establish New 'Pecora Commission'; Demands Paulson's Ouster

SEPT. 28, 2008 (LPAC)—Lyndon LaRouche today heartily endorsed House Resolution 1452, introduced on Sept. 17, 2008, by Representatives Marci Kaptur (D-Oh.) and Scott Garrett (R-NJ), "Establishing the Select Committee on Financial Bailouts." The legislation, which LaRouche dubbed a new "Pecora Commission," would create a Select Committee on Financial Bailouts, to investigate the recent actions of Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke and others, in engineering the taxpayers bailouts and bank takeovers of Bear Stearns, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, Merrill Lynch, Fannie Mae and Freddie Mac, American International Group, Lehman Brothers and others. The bill would empower the Select Committee to "investigate the role that political influence may have had on the oversight of the financial markets by both the Congress and the Federal regulatory agencies," and would require the Select Committee to submit a report to the House of Representatives, "no later than Dec. 31, 2008."

LaRouche applauded the proposal as a "new Pecora Commission," referring to high-profile hearings by the Senate Banking Committee between 1932-1933, which particularly targeted JP Morgan and Goldman Sachs, as leading Wall Street swindlers. The Committee was chaired by Sen. Duncan Fletcher (D-Fl.), but the lead prosecutor of the Wall Street scoundrels on the Committee was chief counsel Ferdinand Pecora. The hearings set the stage for the June 16, 1933 passage of the Glass-Steagall Act.

LaRouche observed, "Goldman Sachs escaped the last time there was a serious probe of Wall Street criminality. Let's make sure it doesn't happen again." LaRouche emphasized, "It is time to just go back to FDR. Wall Street just needs to be told to forget their lunatic schemes. We Americans don't want to hear from Wall Street anymore."

LaRouche zeroed in on Treasury Secretary Hank Paulson. "This man, along with others of the same stripes, created the greatest mass of toxic waste in history. And now, the Bush Administration and the Congress expects the American people to turn to Paulson again, to advise us how to get out of this mess? Don't you think a better advisor than Paulson is needed?" LaRouche declared: "It's time for him to go. He has been a total failure, a real screw-up artist, and we have had enough of this already. He mastered all the techniques that got us into this, the greatest financial collapse since the 14th century. Enough is enough."

BACKGROUND:

How the Glass-Steagall Act Struck a Blow Against Wall Street's Power