Attorney General Eric Holder, the highest law enforcement officer in the land, said he cannot prosecute the big banks because that would endanger the global economy. This is an admission the world is run by the banks and not governments or the rule of law. Holder testified before the Senate Judiciary Committee and in answering Senator Chuck Grassley's questions said this:
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. And I think that is a function of the fact that some of these institutions have become too large.
First, it is absurd to think stopping illegal financial activity would harm the global economy. What does Holder believe the financial crisis was, a help to the global economy? Below is a video clip of the entire exchange between AG Holder and Senator Grassley.
Holder goes on to claim the Department of Justice has been aggressive in pursuing legal action against those responsible for the financial crisis. Are you kidding me? He just gave a free pass to any executive to do whatever they wish, as long as their institution is large.
Chuck Grassley along with Senator Sherrod Brown have been trying to stop TBTF and have asked Holder in a letter why there are no criminal prosecutions of those who caused the financial crisis of 2008 as well as the money laundering activities of large financial institutions.
Grassley's opening statement from the hearing says it all We have a leadership problem at the Department of Justice in not going after financial crime, fraud and putting those responsible in jail.
Failure to Prosecute Banks Deemed “Too Big to Fail”:
The Department continues to follow through with an unfortunate policy of continually entering into civil or criminal settlements with large financial institutions that include large fines, but no jail time for the individuals who perpetrate these frauds and wreak havoc on the financial sector and individual lives. As a result, these companies settle for pennies on the dollar and the cost of these fines simply becomes the cost of doing business for these institutions. It has led many to believe that financial institutions deemed “too big to fail” by the Treasury Department are also “too big to jail”.
What is even more disturbing is that while this distinction was mostly reserved for financial crimes—a position I find flawed in its own regard—this policy appears to have seeped into other misconduct enforced by the Department. For example, in December 2012, the Department entered into a Deferred Prosecution Agreement (DPA) with HSBC, a global bank that admitted to violating federal laws designed to prevent drug lords and terrorists from laundering money in the United States. Let me repeat that, a deferred prosecution agreement for a company involved in money laundering for DRUG LORDS AND TERRORISTS.
What’s worse is that the Department publicly proclaimed a “record” settlement in this case where HSBC paid $1.92 billion to the federal government, improved its internal anti-money laundering controls, and submitted to the oversight of an outside monitor for five years. Despite the fact that this is a “record” settlement, for a bank as gigantic as HSBC, this amounts to less than 11% of HBSC’s profits last year alone, and is a bare fraction of the sums left unmonitored. Many believe that HSBC may have made a profit from the DPA because it actually made more than $1.92 billion by providing services to drug kingpins and terrorists.
I sent a letter to Attorney General Holder expressing my outrage at this DPA on December 13 asking why no employees—not even the ones who turned off the anti-money laundering filters—were prosecuted. Further, Senator Brown and I sent a letter in January seeking the rationale for why no individuals at these large financial institutions are prosecuted. The response was woeful and failed to answer our questions, leading us to question whether the Department has something to hide.
Simply put, this is a leadership problem and one that needs to be fixed quickly and will be a big part of any effort to confirm a new Assistant Attorney General for the Criminal Division.
We've known since TARP our government is in bed with the banks and wouldn't do anything to stop them, including even demanding some executives lose their jobs. Now it's official. The Obama administration's policy is to not prosecute financial crime when a financial institution is large claiming it could disrupt the global economy. This policy gives too big to fail financial institutions Carte blanche to do what ever they want to. It's the wild west in financial land and the sheriff is hiding in the weeds.
Comments
Senator Elizabeth Warren Statement
Warren doesn't have her Senate site together but she did issue a statement:
We officially have two sets of laws in the United States. One for the poor and another for the rich and powerful.
Warren
Well why doesnt Warren go after Obama and his underling Holder and make them see the light? It is because they are both Democrats. We officially have to sets of rules, blast the other side with you disagree, Just talk high level and point no fingers when you disagree with your own team.
Exactly - both sides suck and are completely owned
All a farce, all Punch and Judy games while the puppetmasters with the money control the puppets. Most of the audience is amused/distracted, doesn't dare look behind the curtain to see who's running the show. Blue v. red, Dem. vs. GOP, all crap. And they keep pushing the social issues and divisive issues on abortion, guns, etc., etc. because that always results in heated debates, no resolution on anything, and media coverage. Chocolate ice cream rules, no, vanilla. No matter what year it is, they will always have these issues to distract and divide us with while our national security and economy are completely destroyed by the $ Party.
"Hi DHS, I see my government working for dangerous banksters"
DHS wants me to see something, say something, well, I just did. No one told me that only applied to certain criminals and groups while others could do as they please (while being backed by my taxpayer/FDIC money, thank you). Who knew my taxes would help aid international criminals? So I help aid criminals, but then my taxes have to fund law enforcement to ignore the very same criminals? That can't be right.
Look, I don't plan on laundering money for terrorists or drug traffickers. I'm not going to forge thousands of documents to foreclose on properties. I'm not going to rig LIBOR rates. I'm not going to rig commodities. Not going to trade on inside information. I'm not going to bribe officials. Not going to launder money for corrupt officials. And I'm certainly not getting rich, and certainly not getting rich by doing those things.
But I want to speed when no one is endangered, I want to drink when it suits me in public. I want to get disorderly when I feel like it. I want to buy a Big Mac and shove it in Mayor Bloomberg's face without being threatened with gun violence by armed goons. I want to drink 64 ounces of sugary goodness and smoke as much as I want all day, every day, and give myself a coronary right there in the streets of New York or any other American city. I want to blast my music (Rage Against the Machine seems appropriate) all day and all night without being hassled if my neighbors are okay with it. And yet that's too much to ask in this country because I'm the lawbreaker?
Equal before the law - bullsh*t. Time for public disobedience on a massive scale (if people can tear themselves away from the Kardashians long enough and clue themselves in) because why do we have to follow their rules when they admit they are above the very laws they help create. Helping drug traffickers, murderers, terrorists, forgery, theft, perjury is okay as along as the big banksters do it? And attorneys and law enforcement actually take our $ for "law enforcement" and "justice" while admitting they won't enforce the law or seek justice? Really?
I want my money back now, no, I want my country back now. Time to seek the return of salaries from thousands of officials, agents, attorneys, etc. They aren't doing anything for the $, refuse to do anything, so give it back now. They have admitted they will not perform their duties.
These people really are that stupid and corrupt. Gosh, enforcing the law has a "negative impact." What are the consequences when someone in law enforcement actually tells criminals that control trillions of dollars that they can do whatever they please? Hmmm, what would be the global consequences then? What message does that send to people that used to respect the law? To criminals? To people that never thought about crime but are being punished for being ethical and law-abiding? To people that are increasingly losing any faith in this government? Well, we're going to find out real soon.
We really need to start telling our kids to forget all that "right and wrong" stuff. It's all crap, pure crap. Be a banker so you can rape, pillage, and steal. No need to have a brain or ethics, just a willingness to screw your fellow man wherever he is. Money talks, justice walks.
Hallelujah sir. Well articulated.
Hi Kurtz,
I could not agree more. We are living in a nation of zombies, too busy yapping or texting on their f'in cell phones, usually while driving. Personally, I'm hoping for the best but, I'm preparing for the worst. I'm not a wacko doomsday nut, but I do believe there is a revolution coming and unfortunately I think it's going to be a war of the haves and have nots now that Obama has so successfully divided the nation into economic class warfare. I've worked hard all my life to provide for my family , nothing was handed to me on a silver spoon. By the same token the entitlement mentality that so pervades our country is despicable. Frankly, I'm preparing to protect what I've earned by purchasing an assault rifle and as much ammunition as I can get. When the rioting in the cities spreads to the suburbs, it's shoot first ask questions later. May sound radical, we'll just have to wait and see. Obama still has three years to declare Marshall law, a strong potentiality.
holder
Hasn't any government official heard of the FDIC? Can't we use these to put the banks under government regulation as the FDIC was designed to do? Pathetic excuse Holder.
But global unemployment + banksterism are good for the economy?
Scary "logic" (aka corruption) by an AG. Let's break it down for those still thinking the blue or red team has their backs because they still refuse to see the obvious. Read any comment section on CNN or other channels to see it splits into that tried-and-true distraction within 2 comments no matter what the article covers.
Here it goes:
1) Banksters get rid of laws they don't like (e.g., Glass-Steagall) and break many, many other laws they can't eliminate.
2) Banksters get richer than ever. Banksters cause global collapse of economy because they really aren't "the best and brightest" and admit they don't even understand the very things they create and profit from (this will get you fired from a lemonade stand, but not from running international companies).
3) Taxpayer bails out banksters thanks to bankster lobbyists and corrupt politicians; gets nothing in return and is still on hook for bank failures due to FDIC program.
4) Banks and other corporations make record profits, banksters get bonuses, taxpayer becoming long-term unemployed and poorer as companies lay off more people, demand more deregulation.
5) Government (both Democratic and Republican) refuse to go after banksters or to even enforce simple laws that apply to every single average citizen.
6) Banksters contribute and control both parties.
7) Banksters continue traveling world, continue to break laws in many countries, get richer.
8) EU, the US, and other countries globally still in peril and increasingly so as banksters increase bets on derivatives, continue breaking laws.
9) Lobbyists and corrupt politicians and officials demand banks be left alone and be treated as deities above mortals. Government now admits the obvious - it won't go after banksters because that would endanger the economy (ignoring truth - it's all about $ and corruption and revolving door/connections).
10) Government puppets don't mention how hundreds of millions of long-term unemployed globally and disappearing middle classes in the US and abroad won't do the same exact thing (and also the fact the normal citizens never broke any laws).
11) Government and banksters continue making money for corruption and crimes, middle class disappears, and no one in power does anything to punish the wrongdoing quickly + effectively. Everyone in power blames everyone but themselves for state of affairs, and don't really care about anyone but themselves, relatives, and cronies.
These banksters and their supporters are akin to parasites. The patient is good and healthy. The parasite gets too big, the patient almost dies. Instead of destroying the parasite and removing it from the host, a doctor decides to make the parasite even bigger and tells the patient to feed the parasite, even thought the patient gets weaker and poorer. The patient struggles to live, gets weaker over time. The parasite at some point close to killing the host. Doctor tells patient, "Well, if I remove it now, it will kill you. Best to ignore it." Yup, that's brilliance at work. And these people have jobs in the public and private sectors and make more money in both (through revolving door policies) then we can ever imagine. Isn't it great? Well, off to the soup line that they want to eliminate because feeding people is so 1930s.
Symptoms outrageous
Even when the banks were getting bailouts, their lobbyists keep humming and Congress didn't do a thing to stand up to them. What a golden opportunity missed to clean up the corruption and influence.
This statement is so outrageous, the banks cost the economy $22 trillion yet to claim they cannot do anything about their reckless derivatives or money laundering fraud, when that is what is hurting the economy is astoundingly ridiculous.
Every big bank should close its compliance department ASAP
If I'm a shareholder in Too Big To Jail (or Investigate or Monitor), I would demand that the overpaid jackasses/CEOs close every single compliance department today ASAP. Fire every single person from top to bottom in compliance, legal, etc. They have just been made utterly useless. Every single one of them is a waste of money. Come join the unemployment lines.
They serve no purpose because law enforcement and the government (here and abroad) have said they are free to do as they please and will not be stopped. So fire them all now and give the shareholders the money in dividends, not CEO bonuses.
Go ahead and launder money for drug traffickers, ramp it up 1000X. Forge everyone's signature. If North Korea wants to use their headquarters as military bases in the US, let them - no one will stop them. Do as you please - the US Government that no longer represents citizens has said it's okay. But first, fire every single person in compliance and law - they have been called out as useless.
I'd like to see Eric Holder and everyone else replaced with H1B visa recipients in the US Government. Let's get the same level of non-performance without the blatant corruption for 1/10 the pay. It's only fair. That goes for everyone ignoring bank crimes in the DOJ, Treasury, State Department, Commerce, and on and on. I'm sure Bill Gates and Murdoch would approve.
.
And as for every state AG that's not doing anything, what's the excuse now? The Feds have just admitted they are okay with international crime that threatens our Nation and other nations. So exactly why are they doing nothing and collecting salaries? Maybe it's time for them to be replaced by H1Bs too, because they certainly don't want American citizens that give a crap to fight banksters. Everyone of them, completely and utterly useless. "Overqualified?" Hell no, these people have no qualifications, let alone integrity.
The Holder Theory
If I am ever called for jury duty again, it won't matter the crime, my vote will be "not guilty". Imagine how much we lose in consumer spending from all the murderers, rapists, pedophiles, spouse beaters, bank robbers (no really, there are people who steal from banks. Though the banks really could give them lessons), kidnappers, etc. No matter how many people are hurt, and apparently the more misery you cause, the less we can afford to send them to jail.
I might change my mind if we elect a Democrat to the top position again, as opposed to what we have, but I'm not holding my breath for that one.
if I was on a jury
For non-violent crime or even crime against corporations, I'd be tempted too. It's just ridiculous that some moron who gets a gun and sticks up a 7/11 for $200 bucks is going away for at least 10 years if not life yet if someone puts on a suit and gets an executive position, they will get promoted by wasting $20 billion dollars. Think Jon Corzine.
Right, extreme "right or left", I see mainly corporate lobbyists and their puppets, with a few bold politicians trying to make a stand in the onslaught.
There is no distinction between murdering a person
with a gun vs a typo on their legal papers, or by denying that they received a payment when the homeowner has the receipt in hand, or the others who died by suicide, seeing no hope in their future, such as these.
There are tens of thousands of others among the people who used to live in the 6 million homes that these bastards have foreclosed on, many defrauded in an ongoing and government-enabled criminal conspiracy. Their health issues are far more prevalent and deadly than in the rest of the population, ongoing, and many times accompanied by the loss of their health care, persistent homelessness, and poverty from which they will never recover.
There is nothing nonviolent in the actions of the banksters and their collaborators.
"Leadership problem"? No, it's corruption at the highest levels
Ever notice how more words and euphemisms have to be used the higher the corruption and/or incompetence goes? Things are clear-cut, someone works in a store as a manager, turns off cameras, leaves the store, and every single one of his friends comes in and steals everything with his permission, it's clear he's in on it and needs to be arrested.
But in this day and at upper levels of business and government, it's "a leadership problem" or a failure of "clarity" or negligence. Really? No, it's corruption and complicity. Our government allows people it's supposed to regulate to break laws in return for cash and favors of all sorts (e.g., jobs for themselves and friends, contracts, etc.) - that's called QUID PRO QUO. Not that difficult. The more words they use the more obvious it becomes that laws mean nothing, they'll do as they wish and expect us to play along.
These politicians are going to bring this up during the confirmation hearings of the next Criminal Division? Save us the time and money. All these Chiefs and AUSAs and everyone else takes orders from above, like from the AG and Treasury Secretary and WH (ultimately). If they don't play along, they get fired. If they don't want to play, they don't get hired. They are in it to polish their resumes before switching sides into the same banks and big banster-defending law firms and then maybe teach all about "corporate crime" at Harvard or Yale to future banksters in between speeches for $300,000 at Goldman Sachs. Save the words, euphemisms, the mob outside the window knows it's all corruption and crime perpetrated by those on the inside that get rich for doing what we would be in prison for. And the pathetic thing is these people are held up by the media and think tanks (depending on which side is in power and which media outlet or "think tank" is dealing with it) as models of intelligence or hard work. The more convoluted they make things, the more words are used to make crime seem legal, the more obvious it is they are lying through their teeth and breaking laws. These are all hallmarks of Banana Republics.
I've had my fill of words - perhaps I'll lay out some action
These people don't care about us, how long do our fellow CITIZENS have to rot and die before most people figure that out. How many long-term unemployed have to become homeless before it's obvious DC just doesn't give a sh*t. The local capital also doesn't give a sh*t? What?! Shocking?! But, but, less regulation. Really?! But, but, "hope and change." Really? Clue in.
Nope, f it. Politicians are narcissists by nature - it's what they do, who they are. Same with banksters. Same with people that rely on banksters or politicians for jobs (e.g., Holder, Geithner, etc.). To continually look to those people for reform or help is to look to Alice in Wonderland for instructions on logic - it's fruitless. It's a good thing people like me are few, have low IQs, and don't care about fellow Americans, because if we had writing skills, had semi-decent IQs, and cared about our fellow Americans (even if that meant we care about AMERICA and not PROFITS), we might actually formulate plans that would f' these bastards hard. Hmmm.... I wonder, do any long-term unemployed have skills in media, or politics, or law enforcement, the military, math and science? Do any long-term unemployed have experience getting ignored and screwed by people in the private and public sectors? Do any long-term unemployed close to death that are ignored by friends and family have IQs rivaling those of Einstein, Newton, Tesla, and da Vinci? Eh? You're godda** right they do - and perhaps they have something to say. "Overqualified" though they might be to work as a cog in Douchebag, Inc., I think our country might like to hear from them.
"But, but, Blankfein makes so many millions - he must be smart. But Holder is in power, he must be ethical." Yup, morons can get free money from the Fed, create monetary instruments they don't even understand, write laws, and still lose money on them because they are absolutely idiotic. People can get into power because they are idiotic and corrupt. In fact, it's a prerequisite. Look around you. I'd trust a long-term unemployed citizen to run my country before I'd trust a politician, bankster, CEO, or HR puppet to watch a $1 bill for 5 seconds.
Who gets elected
The problem is the government structure, itself and money in politics. The system is so corrupted, rigged a real representative getting elected has hardly any chance and even if that person is elected, 435 representatives where there is yet another power player pecking order, same with the Senate. They used to form caucuses but lately it seems those groups are almost for show. Now we have some seriously crazy Republicans who clearly don't know even basic economics 101 running committees. Honestly, I just have no idea what it would take to get the country back but if we're looking at banks running the entire globe, betting on Greece to fail then demanding austerity of the people so they get 100% pay out (or 60%) on their bets of Greece's failure...well, it's global domination here and the entire world is really in trouble.
There are ways to cripple it, won't reform it, but will grind it
There are ways to bring it to its knees (legally). Look, as soon as "overqualified" was introduced into this country's lingo, we were FUC***. I mean what country honestly allows corporations and governments to promote dumbing-down and mediocrity?
And if this country is going Roman Empire circa 400 A.D., British Empire circa 1900-1945, etc. at least the honest + good people can fight, fight, and fight some more. If we're doomed, oh well, but the sell-outs and cowards can go along for the ride, the people locked out of jobs and hope and see that honesty pays jacksh*t can have some fun as the Titanic sinks because of hubris + corruption + idiocy. Hey, if the captain's drunk and insane (not saying the Titanic's captain was either), let's show the world it wasn't our fault.
LA Times FDIC made secret deals
The LA Times is reporting a major bombshell. The FDIC kept secret a host of settlements for various fraud committed by banks.
This seems to be original investigation by the LA Times, so check it out.
Great article - no shock
Lesson #1 for our fed friends: deterrence doesn't work if the fines are miniscule compared to the profits made and no one knows any criminal activity was punished. I think a five-year old knows that. Then again, they really don't care about deterrence, just doing barely enough to not make waves before they join the banking industry themselves.
The FDIC and every other agency are so afraid of taking anything to trial (obviously it will piss off their future employers). US Attorneys probably settle 95% of their cases, never go to trial, and that's with all the advantages they have (e.g., FBI manpower, selecting the strongest state cases they want to steal so the feds can plea bargain them, etc.). Even on massive crimes, they settle everything and go for minimum sentences to wrap it up.
The fines are ridiculous! FDIC fines in the single millions on those cases?! And they weren't even going after the big banksters like JP Morgan et al. (the true untouchables).
Any questions or doubts about who owns our government? Does anyone really doubt it at this stage? Republic in name only, absolutely 100%, in name only. Lobbying returns are huge, for a few million, these people bought an entire government and country. The best whores $ could buy at their service. And when it collapses yet again, perhaps this time American citizens will have their own response for both the government and banksters because we have nothing left to offer, we're bled dry. We have no $ left.
Can Holder or the President say "accessory after the fact"?
And is that an impeachable offense?
Nothing has changed except
Nothing has changed except the Fed's balance sheet which has to be well north of $4 trillion on the books and much more off the books.
"Fischer was not only Bernanke's teacher; he was also one of the preeminent economic officials of the '90s, the era of the "Washington consensus" bias in favor of deregulation. After leaving the IMF he became vice chairman of Citigroup—the corporate embodiment of the too-big-to-fail problem. So it was all the more remarkable to hear Fischer apparently jumping to the other side of the issue and chiding his former student at the annual Jackson Hole, Wyo., conference for central bankers last week. Fischer also seemed to take aim at his former allies from the deregulatory '90s, Larry Summers and Tim Geithner.
"We seem to be taking it for granted that we should go back to the structure of the financial system as it was on the eve of the crisis," said Fischer, who is now the governor of the Bank of Israel."
Eric Holder should be charged
Eric Holder should be charged with malfeasance.