Too Big to Jail?

[mikoyan29]

http://www.philly.com/philly/busines...-says-yes.html

Not sure what else to say about this one.

[s_stabeler]

if a bank is too big to fail, it should really be broken up. If it is getting so large that you can't jail those breaking the law, it HAS to be broken up. No person or organization should be above the law. If banks are too big to jail those that are committing offences, they need to be broken up.

to be honest, there really needs to be a size of bank at which breakup is automatic. And I would definitely recommend breaking up any bank which is bailed out due simply to being too big to fail.

[mikoyan29]

What gets me is that the Tea Party folks are always accusing Obama and his administration of being socialists. If that were truly the case, they wouldn't hesitate to throw these folks in jail.

I mean you've got HSBC caught red handed laundering money. You have Goldman-Sachs caught red handed knowing that they were selling crappy investments (but conveniently forgot to mention that to people). You have the Citibank people calling their investors "muppets" as they were gleefully selling fradulent securities. And none of these folks have seen the inside of court room. If you're going to throw the guy on the street corner selling "Praada" purses in jail, then the same standard should apply to the wealthy and powerful.

Then there is the other argument that we wouldn't want to undermine the confidence in the markets. HOw does that work anyway? It seems that allowing these shysters to go free is doing more damage to the market than throwing them in jail would.

Yesterday I found out that my senior Senator is retiring, so on Wonkette they were showing him grilling some of these folks. What good is grilling them if the next thing isn't the Sheriff coming in to pick them up?

It seems like the only people held accountible for anything are the little folks. An executive can run a company into the ground, but does he get fired? Nope. He gets to "resign" and take a few million for his trouble.

[Panacea]

Don't forget the JPMorganChase fiasco and "the Whale" getting the whole LIBOR business brought to light.

The best disinfectant is sunshine. Criminal cases would throw a whole lot of that on these shady dealings and at least slow it down a bit.

I think the reason the government is reluctant to pursue these cases is because the last big cases (Enron) didn't pan out well. Sure the government got a few convictions; some of which were overturned. Most of the people responsible got a slap on the wrist and the real lesson they learned was not to get caught.

I agree that the solution is to start bringing anti trust actions and break up these banks. All they're doing is sitting on taxpayer money, prolonging the crisis and slowing the recovery. We not only survived the breakup of Ma Bell, but it sparked a whole new industry of innovation.

The financial sector needs to do the opposite: go back to being boring and conservative.

[s_stabeler]

I agree that the solution is to start bringing anti trust actions and break up these banks. All they're doing is sitting on taxpayer money, prolonging the crisis and slowing the recovery.

I'm not sure it's all the banks, actually. I'm suspicious of the media, as well. seems that anytime there's good news, the media's talking about how it might not be enough. recently, the UK government had the media under the spotlight for shady dealings ( can't remember exactly what) and are recommending new regulation of the media. coincidence? I think not...

of course, the banks refusing to lend money to businesses isn't helping either. I'm not talking about it being difficult: most businesses seem to be finding it impossible.

[Panacea]

I'm not sure it's all the banks, actually. I'm suspicious of the media, as well. seems that anytime there's good news, the media's talking about how it might not be enough. recently, the UK government had the media under the spotlight for shady dealings ( can't remember exactly what) and are recommending new regulation of the media. coincidence? I think not...

of course, the banks refusing to lend money to businesses isn't helping either. I'm not talking about it being difficult: most businesses seem to be finding it impossible.

You're thinking of Rupert Murdoch. His news corporation hacked into the voicemail of a missing teenager, creating the impression for her distraught parents that she was checking her messages and was still alive . . . when she wasn't. She'd been murdered. His reporters also hacked voicemails of the Royal Family. Bad, bad stuff. One newspaper shut down, several journalists probably going to jail, and Murdoch is in hot water himself.

But that had nothing to do with the issues with the banks. While the media has covered it extensively, they've actually brought a lot of the bad stuff to light, like the London Whale business.

[s_stabeler]

I'm just suspicious about how every single time the government tries to boost the economy, there is questioning as to if it'll be enough.

[Panacea]

I'm just suspicious about how every single time the government tries to boost the economy, there is questioning as to if it'll be enough.

That's partly politics, partly media quest for ratings.

There's no way to know the future; you have to make the best plan you can. But only time will tell if you're right.