ECB Bankers' Dictatorship To Be Formed
September 1, 2012 • 9:44AM

The European Commission will soon release its proposals which will institute a full bankers' dictatorship over the Eurozone financial system. The front-page story of the Financial Times yesterday is the European Commission's plans for all bank supervision to be conducted by the European Central Bank (ECB), that "would strip existing national supervisors of almost all authority to shut down or restructure their countries' failing banks, giving those powers to the ECB." Banks would be bailed out directly by the European Stability Mechanism as the ECB sees fit. The move is obviously aimed at preventing any sort of Glass-Steagall reform from passing.

The plan was agreed upon this week by European Commission President José Manuel Barroso and Commissoner for Internal Markets and Services Michel Barnier, the EU financial regulator. The actual details will not be released until September 12.

The Financial Times plays up German opposition to the plan. The Germans want only the largest banks to be regulated by this dictatorship, rather than every bank in the EU. German Finance Minister Wolfgang Schäuble has an op-ed to this effect in the Financial Times itself. In a rather milquetoast commentary, he writes that not all 6,000 banks can be supervised in that way, but he nonetheless supports the principle of such a supervisor.

If such an atrocity is passed by all the EU countries, it would complete the bankers' dictatorship