Biden’s Nominee Omarova Has a Published Plan to Move All Bank Deposits to the Fed and Let the New York Fed Short Stocks
By Pam Martens and Russ Martens
October 26, 2021
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Saule Omarova
This month, the Vanderbilt Law Review published a 69-page paper by Saule Omarova, President Biden’s nominee to head the Office of the Comptroller of the Currency (OCC), the Federal regulator of the largest banks in the country that operate across state lines. The paper is titled “The People’s Ledger: How to Democratize Money and Finance the Economy.”
The paper, in all seriousness, proposes the following:
(1) Moving all commercial bank deposits from commercial banks to so-called FedAccounts at the Federal Reserve;
(2) Allowing the Fed, in “extreme and rare circumstances, when the Fed is unable to control inflation by raising interest rates,” to confiscate deposits from these FedAccounts in order to tighten monetary policy;
(3) Allowing the most Wall Street-conflicted regional Fed bank in the country, the New York Fed, when there are “rises in market value at rates suggestive of a bubble trend,” such as with technology stocks today, to “short these securities, thereby putting downward pressure on their prices”;
(4) Eliminate the Federal Deposit Insurance Corporation (FDIC) that insures bank deposits;
(5) Consolidate all bank regulatory functions at the OCC – which Omarova has been nominated to head.
Republican Senator Pat Toomey has been running a Red Scare campaign against Omarova, who was born in the Kazakh Soviet Socialist Republic (now Kazakhstan) and attended Moscow State University on a Lenin Personal Academic Scholarship.
The real threat that Omarova poses to U.S. financial stability, that Democrats should be calling out, is that she wants to further concentrate all major aspects of the U.S. banking system in the hands of the Federal Reserve, a captured regulator whose 12 regional bank tentacles are, literally, owned by the banks. (See These Are the Banks that Own the New York Fed and Its Money Button.) Omarova offers not one scintilla of a suggestion about restructuring the Fed so that it is not owned by or controlled by the banks.
In her paper, Omarova characterizes the current relationship between the Fed and the banks as the Fed running a “franchisor ledger” to assist its franchisee-banks. But as the Fed’s secret $29 trillion bailout of the mega banks on Wall Street and their foreign derivative counterparties proved following the financial crash in 2008, it’s actually the banks that are cracking the whip and the Fed amicably doing their bidding. That means that the mega banks are the franchisor and they’ve shifted their faux bank examinations and faux stress tests to the Fed, for appearances sake.
This point is further demonstrated by the fact that during the Fed’s 2007-2010 bailouts, most of the Fed’s emergency lending programs were farmed out in no-bid contracts to the very banks being bailed out. JPMorgan Chase, a five-count felon, continues to have a contract with the Fed to serve as custodian of more than $2 trillion of the Fed’s agency Mortgage-Backed Securities (MBS).
As further proof as to who owns whom, the Federal Reserve Board of Governors has outsourced its major functions to the privately-owned New York Fed, whose largest private shareholders are the mega banks, JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of New York Mellon.
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