Thursday, March 7, 2013

Justice Dept.: TBTF banks now 'Too Big To Jail'

This is an outrage. The Too Big To Fail banks are now also the Too Big To Jail banks, and that's the official word from America's top prosecutor, Attorney General Eric Holder:

"I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. I think that is a function of the fact that some of these institutions have become too large."

As Borsage notes, Attorney General Holder's statement renders bank supervision and regulation meaningless:
Holder's outrageous admission means that bankers operate -- and know they operate -- above the law. That renders all the argument about regulations and legal limits laughable. Bankers spend tens of millions lobbying to weaken regulations and starve regulators of authority and resources. But when the action gets hot, the bubble starts to inflate, the music keeps playing, they can trample the laws, mislead the regulators and defraud their customers, swathed in the confidence that the laws will not apply to them.
Meanwhile, Sen. Elizabeth Warren, creator of the Consumer Financial Protection Bureaunoted the hypocrisy of Too Big To Jail:

"If you're caught with an ounce of cocaine, the chances are good you're gonna go to jail. If it happens repeatedly, you may go to jail for the rest of your life. But evidently if you launder nearly a billion dollars for drug cartels and violate our international sanctions, your company pays a fine and you go home and sleep in your bed at night -- every single individual associated with this. And I think that's fundamentally wrong."


By Robert L. Borosage
March 7, 2013 | Huffington Post

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