July 21, 2012
The Size of the Big Banks Is – Literally – Destroying the Rule of Law
Pulitzer prize-winning journalist Ron Suskind quotes Treasury Secretary Timothy Geithner as saying:
The confidence in the system is so fragile still… a disclosure of a fraud… could result in a run, just like Lehman.
In other words, Geither said that the big bankers are “too big to jail”, because disclosing any portion of their massive fraud would cause bank runs.
Former IMF economist Simon Johnson notes:
The main motivation behind the administration’s indulgence of serious criminality evidently is fear of the consequences of taking tough action on individual bankers.
The message to bank executives today is simple: build your bank to be as big as possible – and then keep growing. If you manage to become big enough, you and your employees are not just too big to fail, but also too big to jail.
Glenn Greenwald notes:
To justify this lack of accountability for the nation’s wealthiest lawbreakers, the all-too-familiar excuses long used to shield the politically powerful are trotted out on cue. Once again, we are told that prosecutions are too disruptive; that it’s more important to fix the system than to seek retribution for the past; that because the wrongdoers’ reputation is in tatters, they have already suffered enough; that we need the goodwill of financial titans to ensure our common prosperity; and so on.