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The idea of bringing criminal charges against one of the nations larger banks has become untenable. The potential cost in jobs, probable shareholder losses and market turmoil would be horrific.
September 9 -
If regulators have concluded that the largest banks are "too big to manage," then let's confront that head-on. But let's not target a bank and drag it down piece by piece.
August 27
What a
While the 1999 memorandum Magrann-Wells cites explains why the Department of Justice refrains from prosecuting large financial institutions for their blatant regulatory violations, it does not explain why the process appears to stop there.
For example, it would not be difficult to identify all the HSBC employees who facilitated and supervised both the money laundering for
At the banks that used fraudulent, "
In the
Just this week, JPMorgan Chase and Assurant
I can appreciate the DOJ's 1999 memorandum. I can understand that there is little benefit to the U.S. economy in driving one of the "too big to behave" banks out of existence. But the continuing stream of regulatory violations would appear to indicate that assessing monetary damages against megabanks does little or nothing to stop misbehavior.
And I believe that is because "banks" do not violate the law. Bankers do.
Bankers set up the process to launder the money for the drug cartels, including
No matter how repulsive the thought, I can understand that there may be an economic rationale for the DOJ to issue "get-out-of-jail-free" cards to the monolithic financial conglomerates that both precipitated and benefited from the financial crisis. They violate regulations, pay token fines and continue to employ millions of Americans.
What I cannot understand is why these institutions have an infinite supply of these cards and are allowed to distribute them to their employees who are violating U.S. laws. Employees who would be prosecuted to the fullest extent of the law, if they worked at smaller institutions.
Jim Wells is president of Wellspring Consulting International which designs financial products and services for non-traditional consumers who do not use traditional financial institutions.