By May 6, 2014 0 Comments Read More →

Holder’s Bold Claim Against Big Banks: ‘There is no such thing as TOO BIG TOO JAIL’

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U.S. Attorney General Eric Holder has made a bold assertion, somewhat surprising for the U.S. Justice Department. In the coming weeks, Holder claims that the U.S. Justice Department will be pursuing criminal investigations of financial institutions that could result in action soon. He added that that no company is “too big to jail,” playing on the common assertion that certain financial institutions are “too big to fail”: so large and so interconnected that their failure would be disastrous to the economy, and they therefore must be supported by government when they face difficulty.

The video of Holder’s comments were posted on the Justice Department’s website on Monday. They came as federal prosecutors have pushed two banks, BNP Paribas SA and Credit Suisse AG, to plead guilty to nothing short of criminal charges. This, would ultimately lead to resolution of federal investigations into sanctions and tax violations.

Holder stopped short of naming the banks in question, but said that he is personally monitoring the ongoing investigations and is “resolved to seeing them through.”

“I intend to reaffirm the principle that no individual or entity that does harm to our economy is ever above the law,” Holder said in the video. “There is no such thing as ‘too big to jail.'”

Holder seemed to back away a bit though, when he said further in the video that prosecutors are working closely with regulators and that they will consider all options before prosecuting.

“Rather than wall off banks from prosecution, the potential for such severe consequences simply means that federal prosecutors conducting these investigations must go the extra mile to coordinate closely with the regulators that oversee these institutions’ day-to-day operations. This cooperation will prove key in the coming weeks and months as the Justice Department continues to pursue several important investigations.”

Is he serious, or is this more government lip-service?

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