Kucinich on Nationalization: Oversight, not Banking, is a Proper Function of Government

Washington, Jan 26 -

Washington D.C. (January 26, 2009) – Congressman Kucinich (D-OH) today made the following statement addressing news reports that President Obama and advisors are considering nationalizing parts of the U.S. banking system. In the statement, Kucinich urges Congress not to nationalize banks, but to place the Federal Reserve under the Treasury Department.

“At a time when millions of Americans are losing jobs, homes, and pensions, our government is prepared to give another trillion to the banks. We are ready to compound the moral hazard by nationalizing banks, which are allegedly profit-making entities.

“This is anti-democratic. Instead of nationalizing banks, we should nationalize the money system by placing the Federal Reserve under the U.S. Treasury, end the fractional reserve system and stop banks from lending credit into circulation. Then instead of borrowing money from the banks and creating debt, government can spend the money into circulation to rebuild and restore America with money for jobs housing, healthcare and education I will soon be introducing legislation to accomplish this.

“Banking is not a proper function of the government, but oversight is. The Treasury Department should not be outsourcing to the Fed its oversight responsibilities. The Fed, which failed miserably to oversee the banks, should be put under Treasury instead.

“Its time for the government to operate in the public interest, not in the interest of private banks. Its time to stop bailing out banks and begin building up America.”

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