Proposed Aggregator Bank is a Trojan Horse for the New âUnited States Bankâ Hugh Wood ( http://www.infowars.com/?p=7208 ) January 19, 2009 Five Months after US Treasury Sec. Paulson asked for TARP Funds (and at this writing not having used not a dime to buy toxic assets), he now proposes yet another solution â A new US Government Owned âAggregator Bank.â  While this idea comes not from the RTC but from the Swedish Banking Crisis of 1990-1993, it has the potential to go far afield of its stated purpose. Swedenâs bank crisis began with Swedish bank deregulation in the late 1980s. Deregulation rapidly eased credit. Easy credit allowed intensive investment in Swedish real estate. Like our (US) recent housing bubble, Swedish real estate prices soared in the late 1980s. As easy credit pushed prices higher Swedish banks loaned more krona against quickly appreciating hard Swedish real estate assets. When the Swedish real estate market collapsed the asset âvaluesâ deflated quickly. Swedish borrowers and their creditors, the Swedish banks, found themselves suddenly illiquid.  Does this sound vaguely familiar? Sweden eventually mopped up the mess, but it cost them 2% of their entire GNP for a number of years. One of the RTC similar vehicles Sweden used in its bank/credit disaster cleanup was a toxic asset holding bank called Securum. âSecurum was the Swedish state company founded in 1992 during the financial crisis in Sweden 1990-1994 for the purpose of taking on and unwinding bad debts from the partly state-owned Nordbanken bank.â  Securum, like the former (now dissolved) RTC, completed it assignment and was dissolved in 1997.  Sec. Paulson, and soon to be Treasury Sec. Tim Geithner, New York Federal Reserve Chairman, now propose we create a US version of Securum â the new US Aggregator Bank. This may work. My fear is that, given our unique US History in banking, our new US âAggregator Bank,â will never be âdissolved.â The First Bank of the United States Charter expired during political infighting in James Madisonâs administration. Madison revived it as the Second Bank of the United States. President Andrew Jackson killed the Second Bank of the United States by Veto in 1832. . We were free of a centralized banking system until the Panic of 1907 brought us the semi public/private Federal Reserve Banking System in 1913. The Federal Reserve (the de facto Third Bank of the United States) is not a true government entity and is not under the complete âcontrolâ of the United States Government. âReserve Banks, as privately owned entities, receive no appropriated funds from Congress,â Lewis v. United States, 680 F.2d 1239 (1982). Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately owned and locally controlled corporations. [ & & &] Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stockholding commercial banks elect two thirds of each Bankâs. Id. None of this (not a government entity) would be true for the new âAggregator Bank,â It would be 100% owned by the Federal Government. Its initial purpose would be as a dump to process toxic assets, but at some point and at some day in the future it will have completed its toxic clean up function.