Wednesday, March 06, 2013


(h/t Pam Spaulding)

This is obviously a case where Capitalism has failed:
AG says megabanks too big to jail
Aaron Elstein @InTheMkts
March 6, 2013 3:09 p.m

Mr. Holder's remarks came during an exchange with Sen. Charles Grassley, who has asked for more information on why the large British bank HSBC wasn't charged with crimes even after it acknowledged laundering money for Mexican druglords and parties in Libya and Iran.

The government's decision to settle with HSBC for $1.9 billion led some to say giant banks are "too big to jail," and Mr. Holder affirmed Wednesday that large banks are harder to prosecute with criminal charges.

"I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them," Mr. Holder said. "If you do prosecute, it will have a negative impact on the national or perhaps even the world economy, and I think that is a function of the fact that some of these institutions have become too large."

Mr. Holder went on to say the sheer size of large banks "has an inhibiting impact on our ability to bring resolutions that I think would be more appropriate. That is something you"—meaning members of Congress—"all need to consider."
This has already gotten some coverage and I hope it gets a lot more.

1 comment:

Ken Hoop said...

It's better than nothing, but don't you believe if Holder had been reading Naked Capitalism from 2008-2012, for just one example, (I could even name Denninger on the right)it would have given him more than enough suggestions on how to proceed?