U.S. Attorney General, Eric Holder had some interesting comments to Congress and Senator Charles Grassley yesterday, all but admitting Wall Street’s biggest crooks are getting a free pass:
“I am concerned that the size of some of these institutions becomes so large that it does become difficult 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 world economy, that is a function of the fact that some of these institutions have become too large. It has an inhibiting impact on our ability to bring resolutions that I think would be more appropriate. That is something that you all need to consider.”
Sound familiar? As our elected officials repeatedly claim they are doing their best to save the economy, they are actually doing the opposite. By condoning widespread fraud and criminal activity within our largest banks, they are weakening the economy and setting the stage for future pain. All the while, the bankers who are looting their own firms and the Treasury have become fabulously wealthy. Isn’t capitalism grand?
John Kenneth Galbraith wrote a definitive study on the Great Depression. Apparently our current Administration thinks that fraud and looting will somehow guide America into a new era of wealth and prosperity. The reality is that the Administration has it exactly backwards. By failing to prosecute criminal fraud, the government is destabilizing the economy, and ensuring future crashes.