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Banks Too Big to Prosecute?

Posted by 15789465 on

I have a link below to a page with an excellent video clip of Senator Elizabeth Warren (D-Mass) grilling regulators about banks that are "too big to prosecute." Her point is that ordinary citizens are often prosecuted on rather flimsy charges, in order to "make an example" and deter others from crimes. On the other hand, big banks practically get away with murder and, when caught, simply settle with regulators and pay fines. 

In Senate hearings, Senator Warren asked the regulators, "When is the last time you took a case all the way to trial against a major Wall Street bank?" The answers: "We can't remember a time when we've ever done that."

Senator Warren's response: [I'm paraphrasing here] "If big banks know you are a pushover, and will never take a case to trial, they know they can settle cheaply with you because you'll do anything to avoid a trial. So, they pay a negotiated fine, continue with illegal activity in some other area, and continue to make huge profits. Breaking the law, getting caught, and paying a negotiated fine is simply a cost of business, just like the payroll expense."

Click HERE for full story and video.


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4 comments

  • Banks/mortgage companies regularly foreclose on loans and wind up owning dilapidated property here in huntsville that they do not repair and are in criminal violation of the housing code. The city community development agency selectively enforces the code and will not cite them. But when an individual purchases the property they are cited and forced to make repairs. When the bank redeems the property the courts make it difficult for an individual to get reimbursed for those repairs.

    It is good to be the bank.
    The golden rule – “he who has the gold makes the rules”

    howie on
  • …to protect them than to prosecute them By Jason Hamlin, on February 20th, 2011

    “Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer.

    “Everything’s ****** up, and nobody goes to jail,” he said. “That’s your whole story right there. Hell, you don’t even have to write the rest of it. Just write that.”

    I put down my notebook. “Just that?”

    “That’s right,” he said, signaling to the waitress for the check. “Everything’s ****** up, and nobody goes to jail. You can end the piece right there.”

    Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world’s wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.

    This article appears in the March 3, 2011 issue of Rolling Stone. The issue is available now on newsstands and will appear in the online archive February 18.

    The rest of them, all of them, got off. Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted. Their names by now are familiar to even the most casual Middle American news consumer: companies like AIG, Goldman Sachs, Lehman Brothers, JP Morgan Chase, Bank of America and Morgan Stanley. Most of these firms were directly involved in elaborate fraud and theft. Lehman Brothers hid billions in loans from its investors. Bank of America lied about billions in bonuses. Goldman Sachs failed to tell clients how it put together the born-to-lose toxic mortgage deals it was selling. What’s more, many of these companies had corporate chieftains whose actions cost investors billions — from AIG derivatives chief Joe Cassano, who assured investors they would not lose even “one dollar” just months before his unit imploded, to the $263 million in compensation that former Lehman chief Dick “The Gorilla” Fuld conveniently failed to disclose. Yet not one of them has faced time behind bars."

    By Jason Hamlin, on February 20th, 2011

    Is this article correct?

    Big Bear Real Estate on
  • Thanks for the info you send.

    John Richard

    teamrichard@comcast.net on
  • Excellent. Every American should listen to this. Thanks for sharing, Denise. Sandy"ShortSale"Frost

    Sandy Frost on

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