The man credited with creating the “too big to jail” designation, US Attorney General Eric Holder, now says “there is no such thing as ‘too big to jail.’”
Eric Holder letter starting point that eliminated deterrence among Wall Street elite
In the late 1990s, just after the financial lobby was credited with successfully removing then Commodity Futures Trading Commission Chairwoman Brooksley Born from office, the star of a young attorney began to shine brightly to those in the Wall Street lobby. This was when then Department of Justice attorney Eric Holder wrote a letter that provided cover for prosecutors to ignore criminal behavior of organizations if prosecuting them would lead to negative economic consequence.
Regulatory observers noted that the consequence was to remove deterrence from the regulatory structure, leading to fraudulent mortgage derivatives at the root of the 2008 market crash to large banks laundering money for drug cartels and terrorist nations not once but caught several times, to brazen defiance of regulatory warnings in MF Global, where an investigation can be documented to have been blocked.
This breakdown of law and order on Wall Street, seldom chronicled or discussed in the mainstream media, has lead multiple well-known hedge fund insiders to describe Wall Street as “lawless” environment for the large banks.
Eric Holder posts video
In a recent video posted on the US Justice Department website, however, Holder appears to say “never mind, it’s all a bad dream.”
In the video, Holder now vowed to view justice as being blind to the financial firm or individual.
“When the Department of Justice conducts an investigation we will always follow the facts wherever they lead,” Holder said after rejecting the notion that “too big to jail” exists. Such comments stand in contrast to the investigation of MF Global Holdings Ltd (OTCMKTS:MFGLQ), where it can be independently documented that the investigation was blocked. “Some conduct may appear wrong and hard to defend, but not violate criminal law,” he later noted, pulling out the weasel words and knowing that there was not much mainstream questioning taking place to challenge his assertions. “Sometimes there may be an appearance of criminal wrongdoing that would not be admitted into a court of law.”
In shifting responsibility to the bank regulatory agencies, mainly the bank-owned US Federal Reserve, Eric Holder noted that rather than “wall off banks from prosecution,” government prosecutors must work with regulators on such actions.
“When laws indeed appear to have been broken, and the evidence supports the allegations, a company’s size will never be a shield from prosecution or penalty,” he said. It’s not only size that matters. It is a small group of current and former big bank executives that literally run roughshod over the US government and laugh at “laws” that needs to be addressed by prosecutors.
The video went on to indicate that prosecution of large banks and potentially those individuals involved in criminal behavior may face justice.