January 29, 2008 (LPAC)--Banking circles that reflect the interests of the Bank of Scotland and the British royal family have been the recipients of European Central Bank largesse in the form of ECB buy-ups of Spanish mortgage securities, said Lyndon LaRouche about a report published by British agent Ambrose Evans Pritchard in today's London Torygraph. Pritchard wrote: ``Spanish banks are issuing mortgage securities and asset-backed bonds on a massive scale to park at the European Central Bank, using them as collateral to raise money at favourable rates from the official credit window in Frankfurt.''

Pritchard says that data put out by Moody's rating agency appears ``to confirm suspicion that the EU [European Union] authorities have carried out a covert rescue of the Spanish mortgage banking system.'' This amounts to a ``defacto closure of the capital markets ... to avoid the sort of mishap suffered by Northern Rock in Britain and Countrywide in the U.S.''

What's really afoot? ``They're bailing out the British Royal Family,'' said Lyndon LaRouche, about this report. He pointed to Banco Santander Central Hispano--the largest bank in Spain and the Royal Bank of Scotland (RBS), which essentially owns Santander, as the actual forces behind the Spanish mortgage bubble. But British agent Pritchard would never say that--that would be encroaching on the Royal Family. ``That is not something he would do,'' said LaRouche, ``but, all the banks effected by this are connected, either directly, or indirectly, to the Santander operation.'' The important fact is that the financial system is gone, collapsed, finished, said LaRouche, and it is impossible at this point to tell who owns anything, since all securities are being hedged and leveraged many times over.

Pritchard's job is to monitor financial and economic policy in the U.S. for the Anglo-Dutch oligarchy, which gives special attention to the influence of Lyndon LaRouche. What Pritchard did do was to echo the words that only LaRouche has used so far in this crisis--that the ``eurozone lacks a clear-cut lender of last resort.'' So policy is run by the Central Banks -- in this case, the ECB in "disguise," says Pritchard.