By Patrick Wood, Editor

One result of the April 2, 2009 G20 meeting in London was the agree­ment to expand the powers of the Finan­cial Sta­bility Forum (FSF) into a new Finan­cial Sta­bility Board (FSB). The FSB is based in Basel, Switzer­land, within the aus­pices of the Bank for Inter­na­tional Settlements.

The BIS is the pin­nacle of global banking, whose working board mem­bers are the heads of cen­tral banks around the world. The his­tory of the BIS is sordid and secretive.

Obama and Gei­thner are pushing to install the FED as the “super-regulator” in the U.S. finan­cial system. This would appear to be a simple fox versus hen house issue at first glance, but the move is much more sinister.

The Fed is a pri­mary member of the BIS. Chairman Bernanke attends up to 10 board of direc­tors meet­ings in Basel, Switzer­land every year, to deter­mine global mon­e­tary policy.

When (and if) the FED achieves super-regulator status over U.S. insti­tu­tions, it will have no imped­i­ment to simply trans­fer­ring it over to the FSB and the BIS…

And that will be the end of sov­er­eignty for the U.S. finan­cial industry, as well as many key indus­tries that are deemed “to big to fail.”

While Bernanke appears as the humble and reluc­tant “aw, shucks folks, I don’t know about that…” bureau­crat, the col­lu­sion between Gei­thner and the FED smacks of ulte­rior motives: Gei­thner was also directly involved with the BIS as Pres­i­dent of the NY Fed before accepting the posi­tion of Sec­re­tary of the Treasury.

Ron Paul is pushing to audit the FED and to abolish it as well. This is a step in the right direc­tion, but it must be accom­plished before reg­u­la­tion is handed over to the BIS. Once the han­dover is com­pleted, it won’t matter if the FED is still around or not.

If this peaks your interest, I strongly sug­gest that you care­fully read and examine the fol­lowing reports.

Fur­ther reading:

World Glob­al­iza­tion of the Banking & Reg­u­la­tory Struc­ture (Joan Veon)

Ellen Brown: The Blood­less Coup of the Global Finan­cial Sta­bility Board: From Guide­lines to Rules. (Ellen Brown)

Finan­cial Sta­bility Board: How it will work (The Guardian UK)

Global Banking: The Bank for Inter­na­tional Set­tle­ments (The August Review)