Key lesson from Iceland crisis is ‘let banks fail’

AFP – Three years after Iceland’s banks collapsed and the country teetered on the brink, its economy is recovering, proof that governments should let failing lenders go bust and protect taxpayers, analysts say.

The North Atlantic island saw its three biggest banks go belly-up in the October 2008 as its overstretched financial sector collapsed under the weight of the global crisis sparked by the crash of US investment giant Lehman Brothers.

The banks became insolvent within a matter of weeks and Reykjavik was forced to let them fail and seek a $2.25 billion bailout from the International Monetary Fund.

After three years of harsh austerity measures, the country’s economy is now showing signs of health despite the current global financial and economic crisis that has Greece verging on default and other eurozone states under pressure.

“The lesson that could be learned from Iceland’s way of handling its crisis is that it is important to shield taxpayers and government finances from bearing the cost of a financial crisis to the extent possible,” Islandsbanki analyst Jon Bjarki Bentsson told AFP.

“Even if our way of dealing with the crisis was not by choice but due to the inability of the government to support the banks back in 2008 due to their size relative to the economy, this has turned out relatively well for us,” Bentsson said.

Iceland’s banking sector had assets worth 11 times the country’s total gross domestic product (GDP) at their peak.

Nobel Prize-winning US economist Paul Krugman echoed Bentsson.

“Where everyone else bailed out the bankers and made the public pay the price, Iceland let the banks go bust and actually expanded its social safety net,” he wrote in a recent commentary in the New York Times.

“Where everyone else was fixated on trying to placate international investors, Iceland imposed temporary controls on the movement of capital to give itself room to maneuver,” he said.

During a visit to Reykjavik last week, Krugman also said Iceland has the krona to thank for its recovery, warning against the notion that adopting the euro can protect against economic imbalances.

“Iceland’s economic rebound shows the advantages of being outside the euro. This notion that by joining the euro you would be safe would come as news to the Spaniards,” he said, referring to one of the key eurozone states struggling to put its public finances in order.

Iceland’s example cannot be directly compared to the dramatic problems currently seen in Greece or Italy, however.

“The big difference between Greece, Italy, etc at the moment and Iceland back in 2008 is that the latter was a banking crisis caused by the collapse of an oversized banking sector while the former is the result of a sovereign debt crisis that has spilled over into the European banking sector,” Bentsson said.

“In Iceland, the government was actually in a sound position debt-wise before the crisis.”

Iceland’s former prime minister Geir Haarde, in power during the 2008 meltdown and currently facing trial over his handling of the crisis, has insisted his government did the right thing early on by letting the banks fail and making creditors carry the losses.

“We saved the country from going bankrupt,” Haarde, 68, told AFP in an interview in July.

“That is evident if you look at our situation now and you compare it to Ireland or not to mention Greece,” he said, adding that the two debt-wracked EU countries “made mistakes that we did not make … We did not guarantee the external debts of the banking system.”

Like Ireland and Latvia, also rescued by international bailout packages and now in recovery, Iceland implemented strict austerity measures and is now reaping the fruits of its efforts.

So much so that its central bank on Wednesday raised its key interest rate by a quarter point to 4.75 percent, in sharp contrast to most other developed countries which have slashed their borrowing costs amid the current crises.

It said economic growth in the first half of 2011 was 2.5 percent and was forecast to be just over 3.0 percent for the year as a whole.

David Stefansson, a research analyst at Arion Bank, told AFP Iceland hiked its rates because it “is in a different place in the economic (cycle) than other countries.

“The central bank thinks that other central banks in similar circumstances can afford to keep interest rates low, and even lower them, because expected inflation abroad is in general quite (a bit) lower,” he said.

El Cartel de la Reserva Federal: Un Parásito Financiero

Por Dean Henderson
Adaptación Luis R. Miranda
20 de junio 2011

Parte Final

El padre del fundador de la Unión Mundial Federalista, James Warburg fue Paul Warburg, que financió a Hitler con la ayuda de Brown Brothers Harriman, socio de Prescott Bush. [1]

El coronel Ely Garrison fue un amigo cercano tanto de Roosevelt, como del presidente Woodrow Wilson. Garrison escribió en Roosevelt, Wilson y la Reserva Federal, “fue Paul Warburg el hombre que creó la Ley de Reserva Federal después de que el Plan Aldrich despertó resentimiento y oposición en todo el país. El cerebro de ambos planes era el barón Alfred Rothschild de Londres. ”

El Plan Aldrich se fraguó en una reunión secreta de 1910 en el complejo privado de JP Morgan en Jekyll Island, Carolina del Sur entre el teniente Nelson Aldrich Rockefeller y Paul Warburg de la dinastía bancaria alemana Warburg. Aldrich, un congresista de Nueva York, más tarde se casó en la familia Rockefeller. Su hijo Winthrop Aldrich presidió Chase Manhattan Bank. Mientras que los banqueros se reunieron, el coronel Edward House, otro títere Rockefeller y confidente cercano del presidente Woodrow Wilson, estaba ocupado convenciendo a Wilson de la importancia de un banco central privado y la introducción de un impuesto sobre la renta a nivel nacional. Un miembro del personal de la Casa de Representantes fue el privilegiado de M16 británico, el General Julius Klein. [2]

Wilson no necesitó mucho convencimiento, ya que estaba en deuda con el magnate del cobre Cleveland Dodge, cuyo mismo nombre fue usado en la empresa Phelps Dodge que se convirtió en una de las compañías mineras más grandes del mundo. Dodge financió la carrera política de Wilson. Wilson llegó a escribir su discurso inaugural en el yate de Dodge. [3]

Wilson era un compañero de clase de los Dodge y Cyrus McCormick de Princeton. Ambos fueron directores del National Bank de Rockefeller (ahora Citigroup). El foco principal de Wilson era la superación de la desconfianza que el público tenía de los banqueros, sobre lo cual el alcalde de Nueva York John Hylan, también se quejó en 1911 cuando sostuvo: “La verdadera amenaza a nuestra república es el gobierno invisible que, al igual que un pulpo gigante, se extiende en su longitud viscosa sobre nuestras ciudades, estados y nación. A la cabeza está un pequeño grupo de casas bancarias, generalmente conocido como los banqueros internacionales “. [4]

Sin embargo, las ocho familias prevalecieron. En 1913, nació el Banco de la Reserva Federal, con Paul Warburg como su primer gobernador. Cuatro años más tarde, los EE.UU. entró en la Primera Guerra Mundial, después que una sociedad secreta conocida como la Mano Negra asesinado el archiduque Fernando de Habsburgo y su esposa. El Archiduque era amigo del Conde Czerin, quien más tarde dijo: “Un año antes de la guerra él [ el archiduque] me informó de que los masones habían decidido asesinarlo.” [5]

Ese mismo año, los bolcheviques derrocaron la monarquía Hohehzollern en Rusia con la ayuda de Max Warburg y Jacob Schiff, mientras que la Declaración de Balfour condujo a la creación de Israel. Esta declaración fue escrita por el sionista Lord Rothschild.

En la década de 1920 el Barón Edmund de Rothschild fundó la Comisió de Economía Palestina, mientras que las oficinas de Kuhn Loeb de Manhattan ayudaron a Rothschild a formar una red para el contrabando de armas a los escuadrones de la muerte sionistas empeñados en apoderarse de las tierras palestinas. El General Julius Klein supervisó la operación y dirigió al Cuerpo de Contrainteligencia del Ejército de los EE.UU., que más tarde produjo a Henry Kissinger. Klein desvió fondos del Plan Marshall para Europa hacia células terroristas sionistas en Palestina después de la Segunda Guerra Mundial. La canalización de los fondos se dio a través del Instituto Sonneborn, que fue controlado por el magnate de la química de Baltimore, Rudolph Sonneborn. Su esposa Dorothy Schiff está relacionada con los Warburg. [6]

Kuhn Loeb llegó a Manhattan con los Warburg. Al mismo tiempo, los Bronfman llegaron a Canadá como parte de la Comisión de Colonización Judía de Moisés Montefiore. Los Montefiores llevaron a cabo el trabajo sucio de la nobleza genovesa desde el siglo 13. Los di Spadaforas hicieron esa función para la casa italiana de Saboya, que fue financiada por la familia de Israel Moses Seif, nombre del cual se origina la palabra Israel que fue dada como nombre para el actual estado judío. Harold Sebag Montefiore es el jefe actual de la Fundación Jerusalén, el ala sionista de los Caballeros de San Juan de Jerusalén. Los Bronfman (el nombre significa “gente del alcohol” en yiddish) se unieron a Arnold Rothstein, un producto del imperio de los Rothschild, para fundar el crimen organizado en la ciudad de Nueva York. Rothstein fue sucedido por Lucky Luciano, Meyer Lansky, Robert Vesco y Santos Trafficante. Los Bronfman se mezclaron con los Rothschild, Loeb y Lamberts. [7]

El año 1917 también vio la adición de la 16 ª Enmienda a la Constitución de los EE.UU., la imposición de un impuesto sobre la renta nacional, a pesar de que fue ratificado por sólo dos de los 36 estados requeridos. El IRS es una empresa privada registrada en Delaware. [8] Cuatro años antes, la Fundación Rockefeller se puso en marcha, para proteger la riqueza de la familia de las disposiciones fiscales, mientras que manipulaba la opinión pública a través de la ingeniería social. Uno de sus tentáculos es el Consejo General de Educación estadounidense.

En la Carta Ocasional # 1 del Consejo dice: “En nuestros sueños tenemos recursos ilimitados y las personas se entregan con perfecta docilidad al alcance de nuestros moldeo. Las convenciones de la educación actual desaparecerán de su mente y, sin vernos obstaculizados por la tradición, vamos a trabajar nuestra propia buena voluntad a un pueblo rural agradecido y sensible. Vamos a tratar de no hacer estas personas ni a ninguno de sus hijos filósofos o hombres de ciencia… de los cuales tenemos amplia oferta. “[9]

Aunque la mayoría de los estadounidenses piensan que la Reserva Federal como una institución del gobierno, esta es de propiedad de las Ocho Familias. El Servicio Secreto es empleado por la Reserva Federal, y no por el Poder Ejecutivo. [10]

Un intercambio entre el senador Edward Kennedy (D-MA) y el entonces presidente de la Fed, Paul Volcker, en las audiencias del Senado en 1982 es instructiva. Kennedy debió pensar en su hermano mayor John cuando le dijo a Volcker que si él fuera ante el comité como miembro del Tesoro de EE.UU. las cosas serían muy diferentes. Volcker, fumando un cigarro, respondió desdeñosamente: “Eso es probablemente cierto. Pero creo que fue diseñado intencionalmente esta manera “. [11] El representante Lee Hamilton (D-NY) lo dijo a Volcker que: “La gente cree que lo que el consejo de los suyos hace no tiene un impacto muy profundo en sus bolsillos, y sin embargo es un grupo de personas, básicamente, inaccesibles para ellos y que no son responsables ante ellos. ”

El presidente Wilson habló de “un poder tan organizado, tan completo, tan penetrante, que mejor no se debía hablar sobre este poder.” Pero el representante Charles Lindberg (D-NY), fue más contundente, clamando contra la Ley de la Reserva Federal aprobada por Woodrow Wilson, que había sido hábilmente apodado el “proyecto de ley del Pueblo”. Lindberg declaró que la Ley, “… establece el Trust más gigantesco en la tierra … Cuando el Presidente firme esta ley, el gobierno invisible movido por el poder del dinero va a ser legitimado. La ley creará inflación cada vez que ellos quieran inflación. A partir de ahora, las depresiones económicas se crearan científicamente. El gobierno invisible por el poder del dinero, que se probó que existe durante la Investigación Trust, va a ser legalizado. Todo el concepto del banco central fue diseñado por el mismo grupo que se suponía debía ser erradicado”. [12]

La Reserva Federal se compone de casi todos los bancos en los EE.UU., pero su agencia de Nueva York es la principal en virtud de sus recursos de capital enorme. El verdadero centro de poder dentro de la Reserva Federal es el Comité Federal de Mercado Abierto (FOMC), en el que sólo el presidente de la Fed de NY tiene un puesto de votación permanente. La FOMC dirige cuestiones sobre la política monetaria que se aplica desde el piso 8 de la Fed de Nueva York, una fortaleza diseñada como el Banco de Inglaterra. [13]

En el quinto piso subterráneo de esta mole de piedra de 14 pisos se encuentran 10.300 toneladas de oro que en su mayoría no pertenece a Estados Unidos, pero que es 1 / 3 de las reservas de oro del mundo. [14]

El mundo del dinero es cada vez más informatizado. Con la introducción de complicados instrumentos financieros -por parte de las Ocho Familias- como derivativos, opciones, opciones de compra a futuro, el volumen de las transacciones interbancarias dio un salto cuántico. Para manejar esto, la Reserva Federal construyó una “autopista” de inquietante conocida como CHIPS (Clearing Interbank Payment System ), que tiene su sede en Nueva York y sigue el modelo de Euro-Clear de Morgan en Bélgica, también conocido como La Bestia.

Cuando la Reserva Federal se creó cinco bancos de New York, Citibank, Chase, Chemical Bank, Manufacturers Hanover y Bankers Trust, tenían una participación del 43% en la Fed de Nueva York. En 1983 estos mismos cinco bancos aumentaron su participación a 53% de la Fed de Nueva York. Para el año 2000, la recién fusionada Citigroup, JP Morgan Chase y Deutsche Bank combinaron sus fuerzas para tener una porción aún mayor, al igual que la facción europea de las Ocho Familias. Colectivamente, poseen acciones mayoritarias en cada corporación del Fortune 500 donde la mayor parte de las acciones y títulos son de renta fija. En 1955, estos cinco bancos representaban el 15% de todas las operaciones de bolsa. En 1985 estaban involucrados en el 85% de todas las transacciones de valores. [15]

Aún más poderosos son los bancos de inversión que llevan los nombres de muchas de las Ocho Familias. En 1982, mientras que el banquero Morgan presidió las negociaciones entre Gran Bretaña y Argentina después de la Guerra de las Malvinas, el presidente Reagan impulsó la Regla 415 de la Comisión de Intercambio (SEC), lo que ayudó a consolidar los valores de suscripción en las manos de seis casas de inversión, propiedad de las Ocho Familias: Goldman Sachs, Merrill Lynch, Morgan Stanley, Salomon Brothers, First Boston y Lehman Brothers. Estos bancos consolidaron su poder a través de la manía de las fusiones de los años 1980 y 1990.

American Express se tragó tanto a Lehman Brothers-Kuhn Loeb -que se había fusionado en 1977- como a Shearson Lehman-Rhoades. La Banca de Israel Moses Seif de la Svizzera Italiana compró una participación del 7% en Lehman Brothers. [16] Salomon Brothers atrapó Philbro de la familia sudafricana Oppenheimer, luego compró Smith Barney. Los tres se convirtieron en parte del Grupo Travelers, dirigidos por Sandy Weill de la familia David-Weill, que controla Lazard Freres a través del socio senior Michel David-Weill. Citibank compró entonces el Grupo Travelers para formar Citigroup. SG Warburg, del cual Chartered Oppenheimer consolidado y posee una participación del 9%, se unió al al Banco BP Paribas, que se fusionó con Merrill Lynch en 1984. Union Bank de Suiza adquirió Paine Webber, mientras que Morgan Stanley Dean Witter compró las operaciones de Discover de Sears.

First Boston, controlado por Kuhn Loeb se fusionó con Credit Suisse, que ya había absorbido White-Weld, para convertirse en CS First Boston -el actor principal en el mercado de eurobonos sucios de Londres. Merrill Lynch -se fusionó con Bank of America en 2008- es el actor principal en este comercio en el lado de EE.UU.. La Sociedad Suiza de Bancos se fusionó con el mayor de Londres, casa de inversiones SG Warburg para crear SBC Warburg, mientras que Warburg se entrelazó más con Merrill Lynch a través de su asociación con Mercury Assets en 1998. El Warburg se formó otra empresa con la Unión de Bancos Suizos, UBS Warburg apoyó la creación. Deutsche Bank compró Fideicomiso Banca y Alex Brown para convertirse por un periódo breve en el banco más grande del mundo, con $ 882 mil millones en activos. Con la derogación de la Ley Glass-Steagal, la línea entre la banca de inversión, la banca comercial y la privada desapareció.

Este puñado de bancos de inversión ejercen una enorme cantidad de control sobre la economía global. Sus actividades incluyen el asesoramiento a países del Tercer Mundo en sus negociaciones de deuda, manejo de las fusiones y la creación de empresas para llenar un vacío económico a través de la puesta en marcha de la oferta inicial pública de acciones (OPI), suscripción de todas las acciones, suscripción de todas las empresas y la emisión de bonos del gobierno, y empujando el carro de la privatización y la globalización de la economía mundial.

Un presidente reciente del Banco Mundial fue James Wolfensohn, de Salomon Smith Barney. Merrill Lynch tenía $ 435 mil millones en activos en 1994, antes de que el frenesí de las fusiones llegara. El mayor banco comercial en el momento, Citibank, sólo tenía $ 249 mil millones en activos.

En 1991, Merrill Lynch manejaba el 26,8% de todas las fusiones globales de bancos. Morgan Stanley manejaba el 16,8%, Goldman Sachs 16,3%, Lehman Brothers 16,1% y Credit Suisse First Boston el 14,5 %. Morgan Stanley hizo $ 60 mil millones en las fusiones de empresas en 1989. Para el año 2007, al reflejarse el efecto de la eliminación de Glass-Steagel, los diez asesores de NMA fueron: Goldman Sachs, Morgan Stanley, Citigroup, JP Morgan Chase, Lehman Brothers, Merrill Lynch, UBS Warburg, Credit Suisse, Deutsche Bank y Lazard. En el campo Underwriting de la bolsa de valores para el año 1991 los cuatro primeros colocados eran Goldman Sachs, Merrill Lynch, Morgan Stanley y CS First Boston. En el ámbito de la privatización global en los años 1985-1995, Goldman Sachs abrió el camino haciendo $ 13,3 mil millones de dólares de sus negocos. UBS Warburg hizo $ 8,2 mil millones, BNP Paribas $ 6,8 mil millones, el CS First Boston $ 4,9 mil millones y BNP -propietario de Merrill Lynch $ 4,4 mil millones. [17]

En 2006 BNP Paribas compró el famoso Banca Nacionale de Lavoro (BNL), que lideró la carga en el armamento de Saddam Hussein. De acuerdo a las finanzas mundiales, ahora es el banco más grande del mundo, con cerca de $ 3 trillones en activos.

Los principales compradores de deuda de EE.UU. en los nueve primeros meses de 1995 llevaban el mismo nombre familiar. Merrill Lynch compró $ 74,2 mil millones en los mercados de deuda de EE.UU., o el 15,3% del total. Lehman Brothers manejaba $ 52,5 mil millones, Morgan Stanley $ 47,4 mil millones, Salomon Smith Barney $ 45,6 mil millones. CS First Boston, Chase Manhattan y Goldman Sachs completan los siete principales. Los tres primeros compradores de deuda municipal de ese año fueron Goldman Sachs, Merrill Lynch y UBS Paine Webber. En el mercado euro -los cuatro primeros suscriptores en 1995 fueron UBS Warburg, Merrill Lynch, Deutsche Bank y Goldman Sachs. [18] Deutsche Bank Morgan Grenfell ingenió la adquisición de sociedades en Europa.

Los actores dominantes en el mercado de futuros de petróleo, tanto en el Intercambio Mercantil de Nueva York como en la Bolsa de Petróleo de Londres son Morgan Stanley Dean Witter, Goldman Sachs (a través de su filial J. Aron), Citigroup (a través de su unidad Philbro) y Deutsche Bank ( a través de la adquisición de Bankers Trust). En 2002 Enron Online fue subastada por una corte de bancarrota para UBS Warburg por $ 0 dólares. UBS fue el primero en compartir los beneficios del monopolio de Enron Online con Lehman Brothers después de los dos primeros años de la operación. [19] En 2008 la desaparición de Lehman, comprado por Barclays hizo con que este último recibiera su parte.

Tras el fiasco de Lehman Brothers y el colapso económico siguiente de 2008, los Cuatro Jinetes de la banca se hicieron aún más grande. JP Morgan Chase adquirió a Bear Stearns y Washington Mutual por centavos. Bank of America Merrill Lynch se apoderó de Countrywide. Wells Fargo tomó el control sobre las oscilaciones de Wachovia Bank de EE.UU.. Barclays tiene un acuerdo ventajoso para los restos de Lehman Brothers.

El ex presidente del Comité Bancario de la Casa de Representantes, Wright Patman (D-TX), declaró sobre la Reserva Federal, y las Ocho Familias, “Estados Unidos tiene hoy en efecto, dos gobiernos. Nosotros somos el gobierno debidamente constituido. Segundo, tenemos un gobierno independiente, sin control y sin coordinación que es el Sistema de la Reserva Federal, que opera los asuntos relacionados al dinero que están reservados constitucionalmente al Congreso”. [20]

Desde la creación de la Reserva Federal, la deuda de EE.UU. (en su mayoría debida a las Ocho Familias) se ha disparado de $ 1 mil millones a mas de $ 14 trillones en la actualidad. Esto supera con creces el total de toda la deuda de los países del tercer mundo combinados. Esos países también deben sus deudas a las mismas Ocho Familias, que poseen la mayoría de todos los bancos centrales del mundo.

Como el senador Barry Goldwater (R-AZ) señaló: “Los banqueros internacionales ganan dinero mediante la extensión de crédito a los gobiernos. Cuanto mayor sea la deuda del estado político, mayor será el interés que se tiene que pagar a los prestamistas. Los bancos centrales de Europa (también) son poseídos y controlados por intereses privados. Reconocemos que es una especie de manera nebulosa en que los Rothschild y los Warburg de Europa y las casas de JP Morgan, Kuhn Loeb & Co., Schiff, Lehman y Rockefeller poseen y controlan la inmensa riqueza. ¿Cómo adquirieron este gran poder financiero y como lo emplean? Es un misterio para la mayoría de nosotros. “[21]

[1] Behold a Pale Horse. William Cooper. Light Technology Press. Sedona, AZ. 1991. p.81

[2] Dope Inc.: The Book that Drove Kissinger Crazy. The Editors of Executive Intelligence Review. Washington, DC. 1992.

[3] Democracy for the Few. Michael Parenti. St. Martin’s Press. New York. 1977. p.67

[4] Descent into Slavery. Des Griffin. Emissary Publications. Pasadena 1991

[5] The Robot’s Rebellion: The Story of the Spiritual Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.158

[6] The Editors of Executive Intelligence Review. p.504

[7] Ibid

[8] Ibid

[9] Ibid. p.77

[10] “Secrets of the Federal Reserve”. Discovery Channel. January 2002

[11] The Confidence Game: How Un-Elected Central Bankers are Governing the Changed World Economy. Steven Solomon. Simon & Schuster. New York. 1995. p.26

[12] Icke. p.178

[13] Solomon. p.63

[14] Ibid. p.27

[15] The Corporate Reapers: The Book of Agribusiness. A.V. Krebs. Essential Books. Washington, DC. 1992. p.166

[16] The Editors of Executive Intelligence Review. p.79

[17] “Playing the Middle”. Anita Raghavan and Bridget O’Brian. Wall Street Journal. 10-2-95

[18] Securities Data Corporation. 1995

[19] CNN Headline News. 1-11-02

[20] The Rockefeller File. Gary Allen. ’76 Press. Seal Beach, CA. 1977. p.156

[21] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids. Jim Marrs. HarperCollins Publishers. New York. 2000. p.77

The Federal Reserve Cartel: A Financial Parasite

by Dean Henderson
June 20, 2011

Final Part

United World Federalists founder James Warburg’s father was Paul Warburg, who financed Hitler with help from Brown Brothers Harriman partner Prescott Bush. [1]

Colonel Ely Garrison was a close friend of both President Teddy Roosevelt and President Woodrow Wilson.  Garrison wrote in Roosevelt, Wilson and the Federal Reserve, “Paul Warburg was the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition.  The mastermind of both plans was Baron Alfred Rothschild of London.”

The Aldrich Plan was hatched at a secret 1910 meeting at JP Morgan’s private resort on Jekyl Island, SC between Rockefeller lieutenant Nelson Aldrich and Paul Warburg of the German Warburg banking dynasty.  Aldrich, a New York congressman, later married into the Rockefeller family.  His son Winthrop Aldrich chaired Chase Manhattan Bank.  While the bankers met, Colonel Edward House, another Rockefeller stooge and close confidant of President Woodrow Wilson, was busy convincing Wilson of the importance of a private central bank and the introduction of a national income tax. A member of House’s staff was British MI6 Permindex insider General Julius Klein. [2]

Wilson didn’t need much convincing, since he was beholden to copper magnate Cleveland Dodge, whose namesake Phelps Dodge became one of the biggest mining companies in the world.  Dodge bankrolled Wilson’s political career. Wilson even wrote his inaugural speech on Dodge’s yacht. [3]

Wilson was a classmate of both Dodge and Cyrus McCormick at Princeton.  Both were directors at Rockefeller’s National City Bank (now Citigroup).  Wilson’s main focus was on overcoming public distrust of the bankers, which New York City Mayor John Hylan echoed in 1911 when he argued, “The real menace to our republic is the invisible government which, like a giant octopus, sprawls its slimy length over our city, state and nation.  At the head is a small group of banking houses, generally referred to as the international bankers”. [4]

But the Eight Families prevailed.  In 1913 the Federal Reserve Bank was born, with Paul Warburg its first Governor.  Four years later the US entered World War I, after a secret society known as the Black Hand assassinated Archduke Ferdinand and his Hapsburg wife.  The Archduke’s friend Count Czerin later said, “A year before the war he informed me that the Masons had resolved upon his death.”[5]

That same year, Bolsheviks overthrew the Hohehzollern monarchy in Russia with help from Max Warburg and Jacob Schiff, while the Balfour Declaration leading to the creation of Israel was penned to Zionist Second Lord Rothschild.

In the 1920’s Baron Edmund de Rothschild founded the Palestine Economics Commission, while Kuhn Loeb’s Manhattan offices helped Rothschild form a network to smuggle weapons to Zionist death squads bent on seizing Palestinian lands.  General Julius Klein oversaw the operation and headed the US Army Counterintelligence Corps, which later produced Henry Kissinger.  Klein diverted Marshall Plan aid to Europe to Zionist terror cells in Palestine after WWII, channeling the funds through the Sonneborn Institute, which was controlled by Baltimore chemical magnate Rudolph Sonneborn.  His wife Dorothy Schiff is related to the Warburgs. [6]

The Kuhn Loebs came to Manhattan with the Warburgs. At the same time the Bronfmans came to Canada as part of the Moses Montefiore Jewish Colonization Committee.  The Montefiores have carried out the dirty work of Genoese nobility since the 13th Century.  The di Spadaforas served that function for the Italian House of Savoy, which was bankrolled by the Israel Moses Seif family for which Israel is named.  Lord Harold Sebag Montefiore is current head of the Jerusalem Foundation, the Zionist wing of the Knights of St. John’s Jerusalem.  The Bronfmans (the name means “liquorman” in Yiddish) tied up with Arnold Rothstein, a product of the Rothschild’s dry goods empire, to found organized crime in New York City.  Rothstein was succeeded by Lucky Luciano, Meyer Lansky, Robert Vesco and Santos Trafficante.  The Bronfmans are intermarried with the Rothschilds, Loebs and Lamberts. [7]

The year 1917 also saw the 16th Amendment added to the US Constitution, levying a national income tax, though it was ratified by only two of the required 36 states.  The IRS is a private corporation registered in Delaware. [8]  Four years earlier the Rockefeller Foundation was launched, to shield family wealth from the new income tax provisions, while steering public opinion through social engineering.  One of its tentacles was the General Education Board.

In Occasional Letter #1 the Board states, “In our dreams we have limitless resources and the people yield themselves with perfect docility to our molding hands. The present education conventions fade from their minds and, unhampered by tradition, we will work our own good will upon a grateful and responsive rural folk.  We shall try not to make these people or any of their children into philosophers or men of learning or men of science…of whom we have ample supply.”[9]

Though most Americans think of the Federal Reserve as a government institution, it is privately held by the Eight Families.  The Secret Service is employed, not by the Executive Branch, but by the Federal Reserve. [10]

An exchange between Sen. Edward Kennedy (D-MA) and Fed Chairman Paul Volcker at Senate hearings in 1982 is instructive.  Kennedy must have thought of his older brother John when he told Volcker that if he were before the committee as a member of US Treasury things would be much different.  Volcker, puffing on a cigar, responded cavalierly, “That’s probably true. But I believe it was intentionally designed this way”. [11]  Rep. Lee Hamilton (D-IN) put it to Volcker that, “People realize that what that board of yours does has a very profound impact on their pocketbooks, and yet it is a group of people basically inaccessible to them and unaccountable to them.”

President Wilson spoke of, “a power so organized, so complete, so pervasive, that they had better not speak above their breaths when they speak in condemnation of it.” Rep. Charles Lindberg (D-NY) was more blunt, railing against Wilson’s Federal Reserve Act, which had cleverly been dubbed the “People’s Bill”.  Lindberg declared that the Act would, “…establish the most gigantic trust on earth…When the president signs this act, the invisible government by the money power will be legitimized.  The law will create inflation whenever the trusts want inflation.  From now on, depressions will be scientifically created.  The invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized.  The whole central bank concept was engineered by the very group it was supposed to strip of power”. [12]

The Fed is made up of most every bank in the US, but the New York Federal Reserve Bank controls the Fed by virtue of its enormous capital resources.  The true center of power within the Fed is the Federal Open Market Committee (FOMC), on which only the NY Fed President holds a permanent voting seat.  The FOMC issues directives on monetary policy which are implemented from the 8th Floor of the NY Fed, a fortress modeled after the Bank of England. [13]

In the fifth sub-basement of the 14-story stone hulk lie 10,300 tons of mostly non-US gold, 1/3 of the world’s gold reserves and by far the largest gold stock in the world. [14]

The world of money is increasingly computerized.  With the introduction by the Eight Families of complicated financial instruments like derivatives, options, puts and futures; the volume of inter-bank transactions took a quantum leap.  To handle this the fed built a superhighway eerily known as CHIPS (Clearing Interbank Payment System), which is based in New York and modeled after Morgan’s Belgium-based Euro-Clear – also known as The Beast.

When the Fed was created five New York banks- Citibank, Chase, Chemical Bank, Manufacturers Hanover and Bankers Trust- held a 43% stake in the New York Fed.  By 1983 these same five banks owned 53% of the NY Fed.  By year 2000, the newly merged Citigroup, JP Morgan Chase and Deutsche Bank combines owned even bigger chunks, as did the European faction of the Eight Families. Collectively they own majority stock in every Fortune 500 corporation and do the bulk of stock and bond trading.  In 1955 the above five banks accounted for 15% of all stock trades.  By 1985 they were involved in 85% of all stock transactions. [15]

Still more powerful are the investment banks which bear the names of many of the Eight Families. In 1982, while Morgan bankers presided over negotiations between Britain and Argentina after the Falklands War, President Reagan pushed through SEC Rule 415, which helped consolidate securities underwriting in the hands of six large investment houses owned by the Eight Families: Goldman Sachs, Merrill Lynch, Morgan Stanley, Salomon Brothers, First Boston and Lehman Brothers.  These banks further consolidated their power via the merger mania of 1980s and 1990s.

American Express swallowed up both Lehman Brothers-Kuhn Loeb – which had merged in 1977 – and Shearson Lehman-Rhoades.  The Israel Moses Seif’s Banca de la Svizzera Italiana bought a 7% stake in Lehman Brothers. [16]  Salomon Brothers nabbed Philbro from the South African Oppenheimer family, then bought Smith Barney. All three then became part of Traveler’s Group, headed by Sandy Weill of the David-Weill family, which controls Lazard Freres through senior partner Michel David-Weill.  Citibank then bought Travelers to form Citigroup. S.G. Warburg, of which Oppenheimer’s Chartered Consolidated owns a 9% stake, joined the old money Banque Paribas- which merged into Merrill Lynch in 1984.  Union Bank of Switzerland acquired Paine Webber, while Morgan Stanley ate up Dean Witter and purchased Discover credit card operations from Sears.

Kuhn Loeb-controlled First Boston merged with Credit Suisse, which had already absorbed White-Weld, to become CS First Boston- the major player in the dirty London Eurobond market.  Merrill Lynch – merged into Bank of America in 2008 – is the major player on the US side of this trade.  Swiss Banking Corporation merged with London’s biggest investment house S.G. Warburg to create SBC Warburg, while Warburg became more intertwined with Merrill Lynch through their 1998 Mercury Assets tie up.  The Warburg’s formed another venture with Union Bank of Switzerland, creating powerhouse UBS Warburg.  Deutsche Bank bought Banker’s Trust and Alex Brown to briefly become the world’s largest bank with $882 billion in assets.  With repeal of Glass-Steagal, the line between investment, commercial and private banking disappeared.

This handful of investment banks exerts an enormous amount of control over the global economy.  Their activities include advising Third World debt negotiations, handling mergers and breakups, creating companies to fill a perceived economic void through the launching of initial public stock offerings (IPOs), underwriting all stocks, underwriting all corporate and government bond issuance, and pulling the bandwagon down the road of privatization and globalization of the world economy.

A recent president of the World Bank was James Wolfensohn of Salomon Smith Barney.  Merrill Lynch had $435 billion in assets in 1994, before the merger frenzy had really even gotten under way.  The biggest commercial bank at the time, Citibank, could claim only $249 billion in assets.

In 1991 Merrill Lynch handled 26.8% of all global bank mergers.  Morgan Stanley did 16.8%, Goldman Sachs 16.3%, Lehman Brothers 16.1% and Credit Suisse First Boston 14.5%.  Morgan Stanley did $60 billion in corporate mergers in 1989.  By 2007, reflecting the repeal of Glass-Steagel, the top ten NMA advisers in order were: Goldman Sachs, Morgan Stanley, Citigroup, JP Morgan Chase, Lehman Brothers, Merrill Lynch, UBS Warburg, Credit Suisse, Deutsche Bank and Lazard. In the IPO stock underwriting field for 1991 the top four were Goldman Sachs, Merrill Lynch, Morgan Stanley and CS First Boston.  In the arena of global privatization for years 1985-1995, Goldman Sachs led the way doing $13.3 billion worth of deals.  UBS Warburg did $8.2 billion, BNP Paribas $6.8 billion, CS First Boston $4.9 billion and Paribas-owner Merrill Lynch $4.4 billion. [17]

In 2006 BNP Paribas bought the notorious Banca Nacionale de Lavoro (BNL), which led the charge in arming Saddam Hussein. According to Global Finance, it is now the world’s largest bank with nearly $3 trillion in assets.

The leading US debt underwriters for the first nine months of 1995 bore the same familiar names.  Merrill Lynch underwrote $74.2 billion in the US debt markets, or 15.3% of the total.  Lehman Brothers handled $52.5 billion, Morgan Stanley $47.4 billion, Salomon Smith Barney $45.6 billion.  CS First Boston, Chase Manhattan and Goldman Sachs rounded out the top seven.  The top three municipal debt underwriters that year were Goldman Sachs, Merrill Lynch and UBS Paine Webber.  In the euro-market the top four underwriters in 1995 were UBS Warburg, Merrill Lynch, Deutsche Bank and Goldman Sachs. [18]  Deutsche Bank’s Morgan Grenfell branch engineered the corporate takeover binge in Europe.

The dominant players in the oil futures markets at both the New York Mercantile Exchange and the London Petroleum Exchange are Morgan Stanley Dean Witter, Goldman Sachs (through its J. Aron & Company subsidiary), Citigroup (through its Philbro unit) and Deutsche Bank (through its Banker’s Trust acquisition).  In 2002 Enron Online was auctioned off by a bankruptcy court to UBS Warburg for $0.  UBS was to share monopoly Enron Online profits with Lehman Brothers after the first two years of the deal. [19] With Lehman’s 2008 demise, its new owner Barclays will get their cut.

Following the Lehman Brothers fiasco and the ensuing financial meltdown of 2008, the Four Horsemen of Banking got even bigger. For pennies on the dollar, JP Morgan Chase was handed Bear Stearns and Washington Mutual. Bank of America commandeered Merrill Lynch and Countrywide. And Wells Fargo seized control over the reeling #5 US bank Wachovia. Barclays got a sweetheart deal for the remains of Lehman Brothers.

Former House Banking Committee Chairman Wright Patman (D-TX), declared of Federal Reserve Eight Families owners, “The United States today has in effect two governments.  We are the duly constituted government.  Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution”. [20]

Since the creation of the Federal Reserve, US debt (mostly owed to the Eight Families) has skyrocketed from $1 billion to nearly $14 trillion today.  This far surpasses the total of all Third World country debt combined, debt which is mostly owed to these same Eight Families, who own most all the world’s central banks.

As Sen. Barry Goldwater (R-AZ) pointed out, “International bankers make money by extending credit to governments.  The greater the debt of the political state, the larger the interest returned to lenders.  The national banks of Europe are (also) owned and controlled by private interests.  We recognize in a hazy sort of way that the Rothschilds and the Warburgs of Europe and the houses of JP Morgan, Kuhn Loeb & Co., Schiff, Lehman and Rockefeller possess and control vast wealth.  How they acquire this vast financial power and employ it is a mystery to most of us.”[21]

[1] Behold a Pale Horse. William Cooper. Light Technology Press. Sedona, AZ. 1991. p.81

[2] Dope Inc.: The Book that Drove Kissinger Crazy. The Editors of Executive Intelligence Review. Washington, DC. 1992.

[3] Democracy for the Few. Michael Parenti. St. Martin’s Press. New York. 1977. p.67

[4] Descent into Slavery. Des Griffin. Emissary Publications. Pasadena 1991

[5] The Robot’s Rebellion: The Story of the Spiritual Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.158

[6] The Editors of Executive Intelligence Review. p.504

[7] Ibid

[8] Ibid

[9] Ibid. p.77

[10] “Secrets of the Federal Reserve”. Discovery Channel. January 2002

[11] The Confidence Game: How Un-Elected Central Bankers are Governing the Changed World Economy. Steven Solomon. Simon & Schuster. New York. 1995. p.26

[12] Icke. p.178

[13] Solomon. p.63

[14] Ibid. p.27

[15] The Corporate Reapers: The Book of Agribusiness. A.V. Krebs. Essential Books. Washington, DC. 1992. p.166

[16] The Editors of Executive Intelligence Review. p.79

[17] “Playing the Middle”. Anita Raghavan and Bridget O’Brian. Wall Street Journal. 10-2-95

[18] Securities Data Corporation. 1995

[19] CNN Headline News. 1-11-02

[20] The Rockefeller File. Gary Allen. ’76 Press. Seal Beach, CA. 1977. p.156

[21] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids. Jim Marrs. HarperCollins Publishers. New York. 2000. p.77

Is Obama a Marxist or Socialist? None, he works for the Bankers

When it comes to who the president serves, Obama is no different from Bush, Clinton, Bush Sr., Carter or Reagan

Kurt Nimmo

Glenn Beck, the Fox News talking heads, and no shortage of Tea Party activists like to characterize Barry Obama as a Marxist. In an article gaining a lot of traction across the blogosphere, Wayne Allyn Root, who considers himself a Libertarian Republican, says Obama is purposely overwhelming the U.S. economy to create systemic failure in order to turn the U.S. into a socialist/Marxist state.

Obamacare, cap-and-trade, legalizing 12 million illegal aliens, increased taxation, and endless bailouts and stimulus boondoggles, Root argues, are schemes designed to overwhelm the system and pave the way for a Marxist takeover of America.

It cannot be denied these schemes will destroy America. It also cannot be denied they are intentional. However, it has nothing to do with Marxism.

Marx advocated a proletarian revolution. He said that in order to overcome the restraint of private property the working class must seize political power through a social revolution and expropriate the capitalist classes around the world and place the productive capacities of society into collective ownership. Marx said the ultimate goal is a a classless and stateless form of communism beneficial to the interests of the proletariat or the working class.

Is it possible the Federal Reserve and Goldman Sachs operatives in the Obama administration truly desire a communist revolution as Glenn Beck and Wayne Allyn Root insist?

During the 2008 election cycle, Goldman Sachs donated nearly a million bucks to Obama. Citigroup and JPMorgan Chase donated nearly $1.5 million to the Obama campaign while Morgan Stanley pitched in over a half million dollars. “When you break it out by individual companies, you find that employees of Goldman Sachs gave more to Obama than workers of any other employer. The Goldman Sachs geniuses are followed by employees of the University of California, UBS, JPMorgan Chase, Citigroup, National Amusements, Lehman Brothers, Harvard and Google. At many of these workplaces, Obama has a three- or four-to-one fund-raising advantage over McCain,” the New York Times wrote on July 1, 2008.

Is it possible all these folks are clueless about the supposed Marxist philosophy of Obama? Is it possible transnational corporations and international banks savvy enough to game the system for trillions of dollars support a communist system that would ultimately strip them of that wealth?

Goldman along with the Federal Reserve rule the Obama administration. William C. Dudley was the president of the Federal Reserve Bank of New York and a partner and managing director at Goldman. Gary Gensler, chairman of the Commodity Futures Trading Commission, spent 18 years at Goldman. Mark Patterson, chief of staff to Tim Geithner, is a former Goldman lobbyist. Philip Murphy, nominated for ambassador to Germany, is a former Goldman executive. Diana Farrell, deputy director of the National Economic Council, is a former Goldman employee. Emil Michael, White House fellow, used to be an investment banker at Goldman.

Obama functionaries are connected to the CFR and the Trilateral Commission, two organizations established to implement world government. Tim Geithner, Susan Rice, Pete Peterson, Gen. James Jones, Thomas Donilion, Paul Volker, Dennis Blair, Richard Haass, Dennis Ross, Richard Holbrooke and others have connections to the Trilateral Commission, the Federal Reserve, the CFR, and Bilderbergers.

“We can be quite sure that somewhere between 400 to 500 high-level members of the Obama administration will be members of the CFR. How can we say that? Because that’s about how many CFR members occupy the current Bush administration (beginning with Vice President Dick Cheney, an in-again, out-again member of the CFR board of directors). And about the same number occupied posts in the Clinton administration,” John F. McManus wrote in November of 2008 after Obama was selected to be the front man for the banksters.

Obama’s mischaracterized socialism is a control mechanism created by the bankers. It has nothing to do with liberating downtrodden workers. The Soviet system was financed by Wall Street, as Rep. Louis T. McFadden, chairman of the House Banking and Currency Committee throughout the 1920-30s, explained: “The course of Russian history has, indeed, been greatly affected by the operations of international bankers… The Soviet Government has been given United States Treasury funds by the Federal Reserve Board… acting through the Chase Bank.”

The late Antony Sutton’s exhaustive research demonstrates how Wall Street bankers supported and financed the Russian revolution, supported the Soviet Union financially, technologically and military both before and after the Second World War, and also supported Hitler and Nazi Germany financially and military both before and during the Second World War.

The monopoly men who exported jobs from America to slave labor gulags in China and are now in the process of looting the financial system are not dedicated Marxists. The late Gary Allen wrote:

If you wanted to control the nation’s manufacturing, commerce, finance, transportation and natural resources, you would need only to control the apex, the power pinnacle, of an all-powerful socialist government. Then you would have a monopoly and could squeeze out all your competitors. If you wanted a national monopoly, you must control a national socialist government. If you want… a worldwide monopoly, you must control a world socialist government. That is what the game is all about. “Communism” is not a movement of the downtrodden masses but is a movement created, manipulated and used by power-seeking billionaires in order to gain control over the world…. first by establishing socialist governments in the various nations and then consolidating them all through a “Great Merger,” into an all-powerful world, socialist super-state.

The Obama banker-CFR-Trilat-Bilderberg administration is the process of forging this “Great Merger” and is moving inexorably toward an all-powerful world, socialist super-state. Obama’s socialism will not emancipate the workers of America. It will further impoverish and enslave them.

As we approach the mid-term elections, the deceptive claim that Obama is a Marxist will pick up steam and will be exploited by the Tea Party movement as it attempts to get Republicans masquerading as patriots and constitutionalists elected to office.

Glenn Beck and Wayne Allyn Root need to reexamine and stop chanting the ludicrous Obama is a Marxist mantra and point out what Obama really is — a sock puppet reading a teleprompter for his employer: the control freaks at the international banks and multinational corporations.

The 2000-Page Power Grab any Dictator Dreams About

In the words of the very same legislators who created the new financial bill, ‘No one will know until this is actually in place how it works’…, said Christopher Dodd, democrat from Connecticut.  The new bill gives sweeping powers to the president, whoever it is, to determine what is done with many aspects of American citizen’s lives.  “…it deals with every single aspect of our lives,” added Dodd.

WSJ

After more than 20 hours of continuous wrangling, Congressional Democrats and White House officials reached agreement on the

Lawmaker Christopher Dodd (D), next to senator Richard Shelby.

final shape of legislation that would transform financial regulation, avoiding last-minute defections among New York lawmakers that had threatened to upend the bill.

After months of uncertainty about how the U.S. would craft new rules, the agreement offers the clearest picture since the financial crisis of how markets and the government will interact for decades to come. The common thread: large financial companies are facing a tougher leash.

he bill is expected to have enough support to become law. Both chambers plan to vote next week. The margin in the House and Senate will likely be close because most Republicans are expected to oppose the measure.

If the bill passes, President Barack Obama is expected to sign the package into law by July 4. Thursday’s agreement also gives the president leverage going into a weekend summit of world leaders in Canada, where he will prod other nations to rewrite their rules.

“This is about as important as it gets, because it deals with every single aspect of our lives,” said Sen. Christopher Dodd (D., Conn.), a chief architect of the compromise.

In two important ways, the agreement is tougher on the banking industry than officials in the Treasury Department anticipated when they first drafted their version of the bill 12 months ago.

Lawmakers agreed to a provision known as the “Volcker” rule, named after former Federal Reserve Chairman Paul Volcker, which prohibits banks from making risky bets with their own funds. To win support from Sen. Scott Brown (R., Mass.), Democrats agreed to allow financial companies to make limited investments in areas such as hedge funds and private-equity funds.

The move could require some big banks to spin off divisions, known as proprietary-trading desks, which make bets with the firms’ money.

The bill also includes a provision, authored by Sen. Blanche Lincoln (D., Ark), which would limit the ability of federally insured banks to trade derivatives. This provision almost derailed the bill following vehement objections from New York Democrats. Ms. Lincoln worked out a deal in the early hours of Friday morning that would allow banks to trade interest-rate swaps, certain credit derivatives and others—in other words the kind of standard safeguards a bank would take to hedge its own risk.

Banks, however, would have to set up separately capitalized affiliates to trade derivatives in areas lawmakers perceived as riskier, including metals, energy swaps, and agriculture commodities, among other things.

A panel of 43 lawmakers spent two weeks reconciling differences between a bill that passed the House in December and the Senate in May. They concluded their negotiations along party lines at a little after 5 a.m. ET in a Capitol Hill conference room marked by tension, levity and exhaustion. Senior administration officials, including Treasury Department Deputy Secretary Neal Wolin, arrived late in the afternoon to try and quell the feud between the New York delegation and Ms. Lincoln.

Major components of the bill, including the derivatives provisions, were negotiated in the hallway of the Dirksen Senate Office Building as the clock neared midnight. At one point, after hearing of an offer from Senate Democrats, Rep. Melissa Bean (D., Ill.) exclaimed: “Are you flipping kidding me? Are you flipping kidding me?”

Democrats hailed the agreement as a tool to prevent the kind of taxpayer-funded bailouts that stabilized the economy in 2008 but left divisive scars. Many Republicans said the bill could have unintended consequences, crimping financial markets and access to credit.

“My guess is there are three unintended consequences on every page of this bill,” Rep. Jeb Hensarling (R., Texas) said of the nearly 2,000-page bill.

The deal comes as the banking industry is still struggling to regain its footing. Hundreds of banks have been dragged down by bad loans and investments. The violent restructuring of the U.S. banking sector two years ago has left just a few companies controlling a vast amount of the deposits, assets and financial plumbing of the country.

Government-controlled Fannie Mae and Freddie Mac remain a multibillion dollar drain on the U.S. Treasury, and largely untouched by this proposal. And the banking sector in parts of Europe remains fragile.

The legislation would redraw how money flows through the U.S. economy, from the way people borrow money to the way banks structure complicated products like derivatives. It could touch every person who has a bank account or uses a credit card.

It would erect a new consumer-protection regulator within the Federal Reserve, give the government new powers to break up failing companies and assign a council of regulators to monitor risks to the financial system. It would also set up strict new rules on big banks, limiting their risk and increasing the costs.

The legislation gives the Securities and Exchange Commission new powers to regulate Wall Street and monitor hedge funds, increasing the agency’s access to funding. The Commodity Futures Trading Commission would also have new powers under the bill, which would try and force most derivatives to face more scrutiny from regulators and other market participants.

To pay for some of the new government programs, the bill would allow the government to charge fees to large banks and hedge funds to raise up to $19 billion spread over five years. The assessment is designed to eventually pay down a part of the national debt.

The broad contours had been set for weeks and mostly mirror a proposal the White House has pushed since last summer. But the last few days represented a mad dash of political maneuvering to iron out final details.

Negotiations went into Friday morning, with New York Democrats and White House officials meeting to address the bill’s potential impact on New York, which relies on the financial industry for employment and tax revenue.

To win broader support, Democrats softened the bill’s impact on community banks, auto dealers, and small payday lenders and check cashers.

From the beginning, lawmakers opted against a dramatic reshaping of the country’s financial architecture. Instead, they moved to create new layers of regulation to prevent companies from taking on too much risk.

For example, regulators decided not to order a sweeping consolidation of the regulatory agencies policing finance. They also decided not to bust up large financial companies, despite pressure from liberal groups.

But they did create a process for seizing and dismantling faltering companies, tools the government lacked in 2008 during the seemingly chaotic events surrounding Bear Stearns, Lehman Brothers, and American International Group Inc.

Democrats are banking on stronger government regulators to constrain risk in the financial system and prevent a future banking crisis—or at least blunt its impact.