«

»

May 24 2013

Breaking Up Is Hard To Do

(4 pm. – promoted by ek hornbeck)

Since the 2008 financial crisis, the five Too Big Too Fail banks are 30% larger. Dodd-Frank has yet to be implemented and already banking lobbyists are working with congress to derail it. In March, Attorney General Eric Holder testified that some banks are just too large which makes them too hard to prosecute. Part of Holder’s justification that bringing criminal charges against large financial institutions would harm the economy, doesn’t quire hold water:

The U.S. Department of Justice appears to have neither conducted nor received any analyses that would show whether criminal charges against large financial institutions would harm the economy, potentially undermining a key DOJ argument for why the world’s biggest banks have escaped indictment.

Testimony by a top Justice official and fresh documents made public on Wednesday during a House financial services committee hearing revealed that financial regulators and the Treasury Department did not provide warnings to prosecutors weighing the economic consequences or fallout in the financial system of criminal indictments against large financial groups. DOJ also could find no records that would substantiate its previous claims that it weighed potentially negative economic or financial impacts when considering criminal charges, said Mythili Raman, acting assistant attorney general for the criminal division.

Wednesday’s revelations are likely to increase criticism of the Obama administration, which has been accused of a lackluster enforcement record against big banks in the financial crisis and other matters.

This week Treasury Secretary Jack Lew appeared at a Senate banking committee hearing where Sen. Elizabeth Warren (D-MA) questioned him on whether it’s time to cap the size of the banks deemed “too big to fail”:

Can we have more Liz Warrens? Like 60 of her?

1 ping

Comments have been disabled.