Banking History & Effects

Western Banking and the Soviet Union, the connection

Quotes of Presidents & others who opposed banking
The Money Masters--video
Basel I, II, III Scheme
Currency Act, the cause of Revolutionary War
Western Banking and the Soviet Union, the connection
Profs Quigley and Sutton on history of secret global agenda
2nd National Bank
Taking back the money power--Hodgson
Capitalism 101, a satire on media economics
Shock Doctrine, Neolliberal economics exposed by Naomi Klein

The merit of the material below is being checked.  It is claimed that the Soviet Union adopted a western type system of banking with the support of major capitalist banks.  A review of articles in Wikipedia does not support such a connection, nor does a current Russian website.  However, a Professor Antony Cyril Sutton with the highest of academic credentials and very important U.S. government positions argues for such a connection of Soviet banking—see his Wall Street and the Bolshevik Revolution.  This book has been relied upon by critics of U.S. banking.   A Googling of Wall Street and the Bolshevik provides numerous links.  The validity of this purported connection is currently being investigated.  The results will be posted—jk.

note:  The Lycos-TRIPOD program has screwed up again.  This time it turned the word document to blue (from black), and their too to select color doesn't work

04/13/1864 Established New York Guaranty and Indemnity Company

   12/01/1895 Name Change To Guaranty Trust Company of New York

   01/26/1910 Acquire By Merger Morton Trust Company

   01/26/1910 Acquire By Merger Fifth Avenue Trust Company

   10/16/1912 Acquire By Merger Standard Trust Company

   05/04/1929 Acquire By Merger Bank of Commerce in New York (4/1929-5/1929)

   04/24/1959 Acquire By Merger J. P. Morgan & Co., Inc (1940-1959)

   04/24/1959 Name Change To Morgan Guaranty Trust Company of New York

   06/26/1959 Acquire By Merger Morgan & CIE, Incorporated

   12/27/1968 Acquire By Merger Morgan Guaranty Safe Deposit Company

   06/01/1996 Acquire By Merger J.P. Morgan Delaware

   11/10/2001 Merge To State JPMorgan Chase Bank

   11/13/2004 Convert Federal JPMorgan Chase Bank, National Association

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^  -- a source on Morgan Guaranty Trust (neutral)  In 1959, the Guaranty Trust acquired J.P. Morgan & Co. and became the Morgan Guaranty Trust Company.

Max May  --  The Guaranty Trust

"Mr. May was born July 3, 1861, in Germany, and had his schooling in that country. He engaged in the foreign exchange business in Darmstadt and Karlesruhe from 1878 to 1883. In the latter year he came to this country and was employed successively with the Union, Atlas and First National Banks of Chicago until 1904, when he moved to New York. He became a naturalized American citizen in 1888. Upon arrival here Mr. May entered the employ of the Guaranty Trust Company, and worked his way to the position of vice president and head of the foreign exchange department. During the World War he was mentioned as becoming the head of a proposed 'foreign exchange bank' to be operated in conjunction with the Federal Reserve Bank. In 1918 he became managing director of the Foreign Trade Banking Corporation, the first discount company of its kind to be established in this country. The institution was dissolved in 1921. In 1922 Mr. May became a director and member of the board of the Russian Commercial Bank of Moscow, the first private bank organized under the Soviet government, and made several trips to Russia between that time and his retirement in 1925." (Max May Dies at 69; Formerly A Banker. New York Times, May 21, 1931.) George F. Baker had been elected a director of the First National Bank of Chicago in 1903. (Chicago Bank Directors. New York Times, Jan. 14, 1903.) "Arrangements have been completed whereby a committee of New York bankers will, in cooperation with the State Department, handle any unusual problems which may arise during the war. The committee is composed of Max May, vice-president of the Guaranty Trust Co.; J.H. Carter of the National City Bank; J.E. Bovensky of the National Bank of Commerce; and George Leblanc of the Equitable Trust Co. The committee states that the step was taken simply to meet any emergency which may arise as a result of changing financial relations between the nations while the war lasts. Its function, if the need arises, may be similar to the committee of bankers in London which was formed under the trading with the enemy measures early in the conflict, which scrutinizes all financial transactions put through by British subjects with other nations." (Bankers Committee to Handle Foreign Exchange War Problems. Bankers' Magazine, May 1917;94(5):614.)


Professor Antony Cyril Sutton stated [in, Wall Street and the Bolshevik], “Western textbooks on Soviet economic development omit any description of the economic and financial aid given to the 1917 Revolution and subsequent economic development by Western Firms and banks." "In the Bolshevik Revolution we have some of the world's richest and most powerful men financing a movement which claims its very existence is based on the concept of stripping of their wealth," declared Allen. "[M]en like the Rothschilds, Rockefellers, Schiffs, Warburgs, Morgans, Harrimans, and Milners."

Perloff agreed, "Jacob Schiff, the head of Kuhn, Loeb and Co., heavily bankrolled the [Communist] revolution. This was reported by White Russian General Arsine de Goulevitch in his book Czarism and the Revolution." "According to his grandson John," described Allen, "Jacob Schiff ... long-time associate of the Rothschilds, financed the Communist Revolution in Russia to the tune of $20 million." He continued, "According to a report on file with the State Department, his firm, Kuhn Loeb and Co. bankrolled the first five year plan for Stalin," and added, "Schiff's descendants are active in the Council on Foreign Relations today."

Referring to the emergence of a communist dictatorship which resulted from the Bolshevik Revolution in 1917, Professor Marrs wrote that they were funded by "Germany and America. ... Their repugnant campaign to purify and cleanse Mother Russia and to seek world domination resulted in ... [millions of] human beings wiped out and brutally purged..." He attested, "Brown Brothers Harriman" helped finance it with "money made possible by it and the affiliated Guaranty Trust Company." Professor Sutton agreed, writing "W. Averell Harriman was a director of Guaranty Trust Company" and "was involved in the Bolshevik Revolution."

On February 3, 1949, the New York Journal-American stated, "Today it is estimated even by Jacob's grandson, John Schiff, a prominent member of New York Society, that the old man sank about $20,000,000 for the final triumph of Bolshevism in Russia. Other New York banking firms also contributed."

Referring to a June 15, 1933, Congressional Record, Allen wrote "Congressman Louis McFadden, chairman of the House Banking Committee, maintained in a speech to his fellow Congressman: "The Soviet government has been given United States Treasure funds by the Federal Reserve Board and the Federal Reserve Banks acting through the Chase Bank and the Guaranty Trust Company and other banks in New York City. ... Open up the books of Amtorg, the trading organization of the Soviet government in New York, and of Gostorg, the general office of the Soviet Trade Organization, and of the State Bank of the Union of Soviet Socialist Republics and you will be staggered to see how much American money has been taken from the United States' Treasury for the benefit of Russia."

"Now our textbooks tell us that the Nazis and Soviets were bitter enemies and their systems are opposites," observed Professor Sutton. But in the "1920s, W. Averell Harriman was a prime supporter of the Soviets with finance and diplomatic assistance ... [and] participated in RUSKOMBANK," which was "the first Soviet commercial bank. Furthermore, Max May, the Vice President of Guaranty Trust, which was dominated by Harriman and Morgan, became the first Vice-President of Ruskombank." However, declared Professor Sutton, "Averell Harriman, his brother Roland Harriman, and ... E.S. James and Knight Woolley, through the Union Bank ... were prime financial backers of Hitler." He asked, "How could a rational man support Soviets and Nazis at the same time?"

A curious dilemma arises when faced with the documented fact that Wall Street funded both Communists and Nazis. First, it would seem these two forms of government are at opposite ends of the political spectrum. And that capitalists would see them as a threat to their growth. Allen provides a possible answer, writing, "But obviously these men have no fear of international Communism. It is only logical to assume that if they financed it, and are willing--even eager--to cooperate with it, it must be because they control it. Can there be another explanation that makes sense?" He adds, "Remember that for over 100 years it has been a standard operating procedure of the Rockefellers and their allies to control both sides of every conflict."

Before Winston Churchill became Prime Minister of Great Britain, he acknowledged a conscious effort of wealthy people to install a communist dictatorship in Russia. He wrote in the February 18th, 1920 issue of the London Illustrated Sunday Herald, that "From the days of Spartacus [Adam] Weishaupt ... to those of Karl Marx, to those of Trotsky, Bella Kuhn, Rose Luxembourg, and Emma Goldman, this world-wide conspiracy has been steadily growing." He affirmed, "It has been the mainspring of every subversive movement during the 19th century; and now at last, this band of extraordinary personalities from the underworld of the great cities of Europe and America have gripped the Russian people by the hair of their heads and have become practically undisputed masters of that enormous empire."

After the Bolshevik Revolution, Wall Street ensured the communists would retain control of Russia. Professor Sutton described this effort when he wrote, "On may 1st, 1918, when the Bolsheviks controlled only a small fraction of Russia (and were to come near to losing even that fraction in the summer of 1918), the American League to Aid and Cooperate with Russia was organized in Washington, D.C to support the Bolsheviks. This was not a 'Hands off Russia' type of committee formed by the Communist Party U.S.A or its allies. It was a committee created by Wall Street with George P. Whalen of Vacuum Oil Company as Treasurer and Coffin and Oudin of General Electric, along with Thompson of the Federal Reserve System, Willard of the Baltimore and Ohio Railroad, and assorted socialists."

"The Bolsheviks were not a visible political force at the time the Czar abdicated," Allen wrote. "And they came to power not because of the downtrodden masses of Russia called them back, but because very powerful men in Europe and the United States sent them in. "They [Lenin and Trotsky] joined up, and, by November, though bribery, cunning, brutality and deception, they were able (not to bring the masses rallying to their cause, but) to hire enough thugs and make enough deals to impose out of the gun barrel what Lenin called 'all power to the Soviets.'"

"Having created their colony in Russia," said Allen, "the Rockefellers and their allies have struggled mightily ever since to keep it alive. Beginning in 1918 this clique has been engaged in transferring money and, probably more important, technical information to the Soviet Union." Perloff agreed, writing, "Probably no name symbolized capitalism more than Rockefeller. Yet that family has for decades supplied trade and credit to Communist nations. After the Bolsheviks took power, the Rockefellers' Standard Oil of New Jersey bought up Russian oil fields, while Standard Oil of New York built the soviets a refiner and made an arrangement to market their oil in Europe. During the 1920's the Rockefellers' Chase Bank helped found the American-Russian Chamber of Commerce, and was involved in financing Soviet raw material exports and selling Soviet bonds in the U.S."

According to Senator Barry Goldwater, Chase Manhattan built a truck factory in Russia which could also be used to produce armored vehicles such as tanks and even rocket launchers. Perloff echoed, "American technology helped the Soviets construct the $5 billion Kama River truck factory ... [which was] successfully converted by the Kremlin to military purposes."

Wall Street continued to aid the Russian communists as they supplied the Vietnamese communists that Americans were fighting in Vietnam, says Allen. In the late 60s Rockefeller and other industrialists built synthetic rubber plants and an aluminum factory totaling about 250 million dollars. Professor Sutton observed, "these American capitalists were willing to finance and subsidize the Soviet Union while the Vietnam War was underway, knowing that the Soviets were supplying the other side."

An article appeared in the New York Times on January 16, 1967, which carried the headline, Eaton Joins Rockefellers to Spur Trade with Reds. Perloff summed up the story, "The ensuing story noted that the Rockefellers were teaming up with tycoon Cyrus Eaton, Jr., who was financing for the Soviet block the construction of a $50 million aluminum plant and rubber plants valued at over $200 million." He added, "The Chase, which maintains a branch office at 1 Karl Marx Square in Moscow, has gained notoriety for financing projects behind the Iron Curtain."

Referring to Professor Antony Cyril Sutton's book, Wall Street and the Bolshevik Revolution, he wrote, "No one has even attempted to refute Sutton's almost excessively scholarly works. They can't. But the misinformation machines that compose our mediacracy can ignore Sutton. And they do." The book, added Perloff, "is based on assiduous research, including a deeper probe into State Department files."

Professor Sutton warned, "The synthesis sought by the Establishment is called the New World Order. Without controlled conflict this New World Order will not come about. ... And this is being done with the calculated, managed, use of conflict. ... This explains why the International bankers backed the Nazis, the Soviet Union, [and] North Korea ... against the United States. The 'conflict' ... [builds] profits while pushing the world ever closer to One World Government. The process continues today." 


Overall, the banking system was highly centralized and fully controlled by a single state-owned Gosbank, responsive to the fulfillment of the government's economic plans. Soviet banks furnished short-term credit to state-owned enterprises (at economy of the Soviet Union).

Gosbank (Russian: Госбанк, Государственный банк СССР, Gosudarstvenny bank SSSR—the USSR State Bank) was the central bank of the Soviet Union and the only bank whatsoever in the entire Union from the 1930s until the year 1987.

The foundation of the bank was part of the implementation of the New Economic Policy. On 3 October 1921, the All-Russian Central Executive Committee (VTsIK), passed a resolution for the founding of the State bank of the Russian Soviet Federative Socialist Republic. This was followed by a similar resolution passed by Sovnarkom on 10 October 1921. It began operations on 16 November 1921. In 1923 it was transformed into the State Bank of the USSR. It was placed under the jurisdiction of Narkomfin.[1] {Note, both are of Jewish heritage, and both were killed during the purge of the party under Stalin in 1938.}

Narkomfin is the Ministry of Finance of the Russian Soviet Federative Socialist Republic, known prior to 1946 as the “People’s Commissariat for Finance”   Nikolai Krestinskywas the first Commissar, appointed in 1918. However following the introduction of the New Economic Policy Narkomfin was made responsible for Gosbank[1], the State Bank of the RSFSR and then theSoviet Union. On 26 November 1921, Lenin issued a note calling for the appointment of Grigory Sokolnikov, who took control of the organisation in 1922, although his formal position was not ratified until December 1922[2]

The Soviet state used Gosbank, primarily, as a tool to impose centralized control upon industry in general, using bank balances and transaction histories to monitor the activity of individual concerns and their compliance with Five-Year Plans and directives. Gosbank did not act as a commercial bank in regard to the profit motive. It acted, theoretically, as an instrument of government policy. Instead of independently and impartially assessing the creditworthiness of the borrower, Gosbank would provide loan funds to favored individuals, groups and industries as directed by the central government.[2]

As the Union neared economic collapse, and also as part of Mikhail Gorbachev's perestroika program, other banks were formed, including; "Promstroybank" (USSR Bank of Industrial Construction), "Zhilstoybank"(USSR Bank of Residential Construction), "Agrobank" (USSR Agricultural Bank), "Vneshekonombank" (USSR Foreign Trade Bank), and "Sberbank" (USSR Savings Bank). "Sberbank" continues to this day as one of Russia's largest banks, retaining senior ex-Gosbank personnel and most of the present Russian government's banking business.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^  Bank of Russia's official website

When the New Economic Policy (NEP) was launched, the All-Russian Central Executive Committee (VTsIK) and the Council of People’s Commissars (SNK), on October 3 and 10, 1921, respectively, passed resolutions re-establishing the bank under the name of the State Bank of the RSFSR. On November 16, 1921, it began to conduct operations and in 1923 it was transformed into the State Bank of the USSR.

    The Statute of the State Bank of the RSFSR, passed by VTsIK on October 13, 1921, said that it was an economic organisation established "to assist by credit and other banking operations the development of industry, agriculture and goods turnover and also the concentration of monetary turnovers and the implementation of other measures designed to establish proper money circulation". The bank had the right to extend loans to industrial and commercial enterprises based on different forms of ownership, farms and self-employed handicraftsmen "only if they were solvent and their financing was economically justified". The State Bank was a part of the People’s Commissariat of Finance (Narkomfin), directly accountable to the People’s Commissar (Minister) of Finance.

In November 1921 the State Bank was granted the exclusive right to conduct operations with foreign currency and valuables. It also set the official price of precious metals and the official exchange rate, regulating private trade in gold, silver and foreign currency on stock exchanges and cheques and bills of exchange drawn in foreign currency, which were permitted in 1922.

    Two re-denominations conducted in 1922 and 1923 increased the face value of Soviet paper money which Narkomfin issued at that time to cover the budget deficit. During the first re-denomination the new ruble of the 1922 issue exchanged for 10,000 rubles of all issues that were in circulation in the country; during the second re-denomination the new ruble of the 1923 issue exchanged for 100 rubles of the 1922 issue.

   On October 11, 1922, the State Bank was granted the right to issue the chervonets (banknote) and became the issuing centre. The issue of the chervonets marked the beginning of the monetary reform that ended spiralling post-war inflation.

    In 1922-1924 both the ruble and the chervonets were in circulation. The chervonets was backed by gold: it was equivalent to 7.74232 grams of fine gold, equalling the tsarist Russia’s 10-ruble coin. In 1923 Russia began to mint gold chervonets coins, which were mostly used in foreign trade. In March 1924 the monetary reform was completed and the new ruble, which was used as change and equalled one-tenth of the chervonets, exchanged for 50,000 rubles of the 1923 issue or 50 million rubles of the earlier issues.

    During the period of the new economic policy (NEP) the following types of bank credits were used: the discounting of bills of exchange, demand loans from special current accounts covered by bills of exchange and time loans against bills of exchange. In addition, three years after its founding, the bank began to practise direct target crediting. In October 1924 the State Bank drew up its first consolidated credit plan comprising all branches. As a result of the reform of the cash structure of the State Treasury, conducted in 1925, the cash holdings of the State Bank and Narkomfin were merged.

    Soviet Russia’s first commercial banks, including sectoral joint-stock banks (specialised banks) and mutual loan societies, appeared in 1922. These banks were to extend short- or long-term loans to individual sectors of the economy. In 1924 the Committee on Banks was set up under the State Bank’s Board to co-ordinate their activities.

    In the latter half of the 1920s the functions and activities of the State Bank changed dramatically. The change was mainly the result of the accelerated rates of industrialisation, which required vast capital investment in the basic industries within a short period of time.

    It was impossible to industrialise the USSR by traditional methods, that is, by accumulating financial resources inside the country and using foreign loans. The population lacked the required savings, while foreign loans could not be obtained for economic (the world was in the grip of an economic crisis) and political reasons. As a result industrialisation in the USSR was financed by money emission. Throughout the entire period of phasing out the NEP the Soviet authorities tried to find the simplest means by which the state could distribute funds between the various sectors of the economy.

  In June 1927 as a result of tighter regulation of the short-term capital movement the State Bank was vested with the responsibility of exercising immediate day-to-day control over the entire credit system, while the Narkomfin retained its function of general regulation. The State Bank was to supervise the activities of other credit institutions in compliance with government credit policy directives. Specialised banks were required to keep their spare funds in and borrow from the State Bank only and the latter was granted the right to be represented in their boards and auditing units. In addition, the State Bank increased its share of the specialised banks’ equity capital.

    As the banking system was re-organised in February 1928, most short-term credit operations began to be concentrated in the State Bank. It also took control of many branches of joint-stock banks, which began to play an auxiliary role in crediting the economy. Long-term lending was conducted mainly by the Bank for the Long-Term Crediting of Industry and Power Engineering (BDK) specially created for this purpose, the Central Utilities and Housing Bank (Tsekombank) and partly the Central Agricultural Bank (TsSKhbank).

    In August 1928 the Central Bank was assigned the task of cash budgeting and that made it possible to concentrate all the cash operations of the socialist economy in the State Bank.

    In June 1929 the first Statute of the State Bank was adopted, which declared the State Bank an authority regulating money circulation and short-term lending in accordance with the general economic development plan of the USSR.

    In the late 1920s and early 1930s the USSR carried out a series of reforms aimed at creating an effective mechanism of centrally planned regulation of the material and financial aspects of the reproduction process. Accordingly, a credit reform was carried through in 1930-1932, which resulted in the creation of a mechanism of centrally planned regulation of the monetary and credit resource flows.

    In January 1930 as a result of the abolition of mutual commercial credit all direct short-term lending began to be conducted in the State Bank. All specialised banks turned into long-term investment banks and all their branches were closed. Specialised banks were required to conduct all operations through State Bank branches.

    In January 1931 the acceptance form of non-cash settlements through the State Bank was introduced.

    In March 1931 the State Bank’s functions as the only short-term credit bank and settlement and cash centre of the Soviet economy were established.

    In June 1931 working capital of enterprises was divided into their own capital and borrowed capital, and the main principles of short-term bank crediting were laid down. When enterprises became owners of working capital, it became possible to establish the entities of bank crediting. State enterprises now received short-term loans only to finance en route values, advance payments for seasonal production reserves, the accumulation of seasonal reserves of raw materials, fuel, production and auxiliary materials, temporary increases in investment in unfinished construction projects, seasonal accumulation of finished goods and products and other temporary needs related to the production and circulation of commodities.

    In May 1932 the functions of the State Bank and those of the long-term investment banks (Prombank, Selkhozbank, Vsekobank and Tsekombank) were finally delineated.

    As a result of the credit reform the State Bank lost the last elements of a commercial bank and became a typical Soviet state bank whose main functions were to extend planned loans to the economy, manage money circulation and settlements, do the cash budgeting and effect international settlements. The structure of the credit system that was established at that time would remain in place for 55 years practically unchanged.

    Later on all changes in the activities of the State Bank were limited to the introduction of new forms of planned credit to the economy and bank settlements and also new methods of controlling the spending of funds on wages and salaries (80% of the entire cash turnover) and the collection of proceeds from trade.

    In February 1930 all transactions to sell gold and foreign currency to private individuals for chervonets at a fixed rate were banned, the Soviet currency was withdrawn from foreign exchanges and a quoting commission was set up under the State Bank’s Board to set the exchange rates of foreign currencies.

    In 1933 the State Bank implemented a series of measures to accelerate settlements, improve accounting, reporting and paperwork and enhance internal banking control. The State Bank balance sheet was restructured on a departmental basis to become comparable with the credit plan. The offsetting of interaffiliate turnovers was decentralised, while the centre continued to exercise general control.

In 1939 the State Bank began to collect cash.

    During the Second World War (1941-1945) it issued cash to cover the budget deficit, increasing the money supply fourfold. To normalise money circulation a confiscatory monetary reform was conducted in 1947, during which old money was exchanged for new at the rate of 10 to 1, cash accounts in the savings banks were re-evaluated and all state loans, except the 1947 loan, were converted.

In March 1950 the gold content of the ruble was set at 0.222168 grams of fine gold.

In December 1949 the second Statute of the State Bank was adopted.

    In April 1959 an overhaul of 1959 the credit system resulted in the transfer of some operations conducted by the Selkhozbank, Tsekombank and municipal banks to the State Bank.

In 1960 the State Bank began to draw up plans to credit long-term investment.

    In May 1961 the ruble was re-denominated and devalued. One new ruble exchanged for 10 old rubles. At the same time the gold content of the ruble was only increased four times to equal 0.987412 grams of fine gold.

In October 1960 the State Bank adopted its third Statute and in 1963 all the state savings banks were brought under its control.

    In 1965-1969 the economic reform brought about some changes in the activities of the State Bank, which were connected with lending and settlements, money circulation planning and regulation, financing capital investments and organising the savings system. Credits on material assets turnover and wage costs and credits on ordinary loan accounts became the main means of crediting industry.

    In July 1987 as a result of the reorganisation of the credit system new specialised banks were founded (Vneshekonombank SSSR, Promstroibank SSSR, Zhilsotsbank SSSR and Sberbank SSSR) and the State Bank began to perform the functions of the country’s main bank. It was assigned the task of elaborating the consolidated credit plan and planning the distribution of funds and credit investments among all banks.

    In September 1988 the fourth Statute of the State Bank of the USSR was approved, declaring the State Bank the country’s main bank and the only issuing centre and organiser of credit and settlement relations in the economy.

    In March 1989 the transfer of the specialised banks to full cost-accounting and self-financing required the State Bank to provide them with target figures on the volume of credit resources, the amount of household savings taken on deposit, and the volume of foreign-currency receipts and payments on banking operations.

In January 1990 the State Bank was given control over the Savings Bank of the USSR.

    On July 13, 1990, the State Bank of the RSFSR, accountable to the Supreme Soviet of the RSFSR, was created on the basis of the Russian Republic Bank of the State Bank of the USSR.

    On December 2, 1990, the Supreme Soviet of the RSFSR passed the Law on the Central Bank of the RSFSR (Bank of Russia), which stipulated that the Bank of Russia was a legal entity and the main bank of the RSFSR and that it was accountable to the Supreme Soviet of the RSFSR. The law specified the functions of the bank in organising money circulation, monetary regulation, economic activity and the regulation of joint-stock and co-operative banks.

    In December 1990 the Law on the State Bank of the USSR and the Law on Banks and Banking were passed. Under these laws the State Bank of the USSR and the national banks that were being established at that time on the basis of the republic divisions of the State Bank were to build a single system of central banks based on a single monetary unit, the ruble, and fulfilling the functions of a reserve system.

    In June 1991 the Statute of the Central Bank of the RSFSR (Bank of Russia), accountable to the Supreme Soviet of the RSFSR, was approved.

    The period between July 1990 and December 1991 was a time of conflict between the Russian State Bank and the State Bank of the USSR.

    In November 1991, owing to the establishment of the Commonwealth of Independent States and the disbandment of Soviet Union structures, the Supreme Soviet of the RSFSR proclaimed the Central Bank of the RSFSR the only body of monetary and foreign exchange regulation in the RSFSR. It was entrusted with the functions of the State Bank of the USSR in issuing money and setting the exchange rate of the ruble. The Central Bank of the RSFSR was instructed to assume, before January 1, 1992, full control of the assets, technical facilities and other resources of the State Bank of the USSR and all its institutions, enterprises and organisations.

    On December 20, 1991, the State Bank of the USSR was dissolved and all its assets, liabilities and property in the RSFSR were transferred to the Central Bank of the RSFSR (Bank of Russia).


More from Wikipedia, various sites

Assets of the largest 1,000 banks in the world grew by 6.8% in the 2008/2009 financial year to a record $96.4 trillion while profits declined by 85% to $115bn. Growth in assets in adverse market conditions was largely a result of recapitalization. EU banks held the largest share of the total, 56% in 2008/2009, down from 61% in the previous year. Asian banks' share increased from 12% to 14% during the year, while the share of US banks increased from 11% to 13%. Fee revenue generated by global investment banking totaled $66.3bn in 2009, up 12% on the previous year.[10] …. Unlike most other regulated industries, the regulator is typically also a participant in the market, being either a publicly or privately governed central bank. Central banks also typically have a monopoly on the business of issuing banknotes.  {In other words, they are self-regulated, viz. that they regulate themselves for the sake of promoting their special interests.  Thus they are not function for the sake of the nation or its people.  And since they regulate the currency, they are above government.  As Napoleon said, “The hand that gives is above the hand that takes.” } PDF link to the largest banks graph as of 2009 ranked by Banker’s Magazine in 2009.  The graph substantiates that US banks are only 13% while EU are 56%. 

Lenin came from a diverse ancestry. He was of Christian Russian, Tatar, German, and Swedish descent, while his maternal grandfather may have descended from the Jewish Blank family.[4] Lenin is also believed to have had Kalmyk ancestry on his father's side.[5][6]  {in Lenin site}.

Overall, the banking system was highly centralized and fully controlled by a single state-owned Gosbank, responsive to the fulfillment of the government's economic plans. Soviet banks furnished short-term credit to state-owned enterprises.  {in Soviet banking site}.  


These International bankers and Rockefeller-Standard Oil interests control the majority of newspapers and use the columns of these papers to club into submission or rive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government -- Theodore Roosevelt, New York Times, March 27, 1922