German Savings Banks President Calls for Exit from Anglo-American System
July 15, 2012 • 8:32AM

In an interview with the Sueddeutsche Zeitung news daily July 12, Georg Fahrenschon, president of the German savings banks association, says he is skeptical about a "banking separation system as it has existed in the USA in former times," because "nobody so far has explained to me how to have a clean separation of banking operations. It is true, however, that we have to cut loose from the Anglo-American model of finance which today is dominating the world."

"Banks must again have a serving function. Under British and American influence, the financial institutes have acted like the masters of the world, which did evermore risky deals decoupled from reality," Fahrenschon added, saying that in 2005 people were laughing about the savings banks as lagging behind, whereas today, the savings banks model is being appreciated again. Fahrenschon then criticized that shadow banks are not regulated but are "moving around trillions of dollars. It is an intolerable situation that there is hardly any regulation there." Told by the Sueddeutsche interviewer that "London and Washington have no interest in that," Fahrenschon answers: "Right. Instead, they are trying to talk us into the alleged need to solve the euro crisis with evermore money. That is something we must resist with self-confidence."