Complicates Prosecution Efforts
Attorney General Eric Holder suggested Wednesday that some financial institutions have become too large and are escaping full-fledged prosecution as a result.
Testifying before the Senate Judiciary Committee, Holder told lawmakers that he is concerned that some institutions have become so massive and influential that bringing criminal charges against them could imperil the financial system and the broader economy. His remarks come as a growing number of lawmakers have suggested that big banks are, effectively, "too big to jail."
"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," he said. "And I think that is a function of the fact that some of these institutions have become too large."
He suggested that prior attempts to bring enforcement against banks may have been stifled by their outsize influence, saying it has an "inhibiting influence...on our ability to bring resolutions that I think would be more appropriate."
The Justice Department is required to consider the economic impact of its actions, but Holder's comments should bolster an increasingly vocal group of lawmakers that argue the nation's biggest banks have gotten too large and need to be curbed.
Sens. Chuck Grassley (R-IA) and Sherrod Brown (D-OH) pressed Holder on the issue in a letter sent in February, airing their disappointment that no major criminal charges had been filed against banks or their employees in the wake of the financial crisis. And Sen. Elizabeth Warren (D-MA) drew headlines when she blasted financial regulators during a separate hearing for failing to bring any major financial institutions to trial since the meltdown.
Grassley pressed Holder again on the issue during testimony Wednesday, at which point Holder said he essentially agreed.
"The concern that you have raised is one that I, frankly, share," he said, adding that ultimately the best deterrent would be if they could bring charges against individuals instead of companies.
However, he also added that all of the bad behavior on Wall Street leading up to the crisis may not necessarily have been criminal and that his criminal team has been "as aggressive as they could be."
Holder touted the Justice Department's efforts on financial fraud, specifically noting the government's civil suit against the credit rating agency Standard & Poor's, in which the government is seeking at least $5 billion in damages. The rater has said the lawsuit is without merit and is challenging it.
READ FULL SOURCE ARTICLE: 03/06/2013
Editor's Note: They broke up AT&T creating the "baby-Bells," using an anti-trust lawsuit and that was simply because AT&T wanted to expand into computer systems. Big banks have been at the center of our economic meltdown from the start. They caving to ACORN and like-minded activist groups to issue mortgages to those who should never have received them. And they colluded with not only Fannie and Freddie to escape the consequences of their decisions, but with the secretive credit rating companies, who are literally held accountable by no one, to create such an unfriendly and inequitable system for the honest, hardworking American that the idea of a fair-rate mortgage is a "dream from my father"...
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