Bombshell: Senator Sherrod Brown Questions Obama Nominee on Too-Big-to-Jail Banks

[xchrom]

http://www.alternet.org/economy/bombshell-senator-sherrod-brown-questions-obama-nominee-too-big-jail-banks



***SNIP

Senator Brown: When you were U.S. Attorney, my understanding is you consulted Bob Rubin and Larry Summers when considering whether to bring charges against financial firms. Is that correct?

White: I actually consulted the Deputy Attorney General who had Mr. Summers call me back. I was asking a factual question.

Senator Brown: Did they reject the argument that institutions could not be prosecuted to the fullest extent of the law?

White: I’d like to answer that yes or no but I can’t. Essentially, I was seeking information based on an argument that had been made by the lawyers for the institution that I ultimately indicted, as to whether an indictment of that institution would result in great damage to either the Japanese economy or the world economy. And the answer I got back is that I should proceed to make my own decision; which I took to mean that it would likely not have that impact.

Senator Brown: Policy seems to have changed. You a moment ago said, you talked about the SEC doesn’t consider, you used the term collateral consequences to Senator Menendez’ question. And in 2008, the Fed’s General Counsel called the SEC to urge the Commission not to pursue fault penalties against bailed out firms that had committed fraud. As a result, institutional investors, pension funds that provide retirement security for working Americans for example, ended up with less compensation in the settlement. The New York Times affirmed the costs were shifted from Wall Street banks to working Americans. Was the SEC right to lower these penalties back in ’08.

[onethatcares]

1. the term "fraud" is finally being spoken out loud

and the beat goes on.

[valerief]

3. If only they used the word "crime" along with "fraud", too. It's like using "misspoken" instead of

"lie".

[NoMoreWarNow]

2. not sure what took these guys so long, maybe Elizabeth Warren catalyzed it

better later than never, for sure.

[valerief]

4. Sometimes I think "late" is always part of the performance.

And the cyclical circus goes on. Business as usual. Plunder, feign retribution, and plunder again. The families running the world keep playing the same show.

Is my cynicism showing too much?

[NoMoreWarNow]

6. just a bit

[rhett o rick]

5. Maybe Sen Warren's brave stance against the oligarchs is catching.