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View Diary: Lauryn Hill Begins 3-Month Sentence for Tax Evasion. Number of Wall St. Executives in Jail? Zero. (80 comments)

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  •  diarist needs to point out what (4+ / 0-)
    Recommended by:
    johnny wurster, FG, Balto, Quicklund

    the banksters did that was illegal and they could be prosecuted on.
    Unethical behavior is not always illegal. sadly.

    •  Seriously? (6+ / 0-)

      Nothing illegal? Auto-signing thousands of mortages a day that were supposed to be reviewed in person? Faulty loans, fraudulent foreclosures.

      I swear in the past two days Ive seen people defending John Yoo and now saying that banksters did only 'unethical' not illegal things? I feel like I woke up in some alternate universe.

      Money laundering by large international banks has reached epidemic proportions, and U.S. authorities are supposedly looking into Citigroup and JPMorgan Chase & Co. Gov. Jerome Powell, on behalf of the Board of Governors of the Federal Reserve System, recently testified to Congress on the issue. International criminals needn’t worry. Complicit bankers have nothing to fear from the U.S. justice system.

      There may be fines, but the largest financial companies are unlikely to face criminal actions or meaningful sanctions. The Department of Justice has decided that these banks are too big to prosecute to the full extent of the law, though why this also gets employees and executives off the hook remains a mystery. And the Federal Reserve refuses to rescind bank licenses, undermining the credibility and stability of the financial system.
      At a recent congressional hearing, Sen. Elizabeth Warren, D-Mass., asked what it would take for a company to lose its U.S. banking license. Powell replied that pulling a bank’s license may be “appropriate when there’s a criminal conviction.”

      I have not found any cases of the Fed ordering the termination of banking activities in the U.S. for a foreign bank after a criminal conviction for money laundering. Nor has the Fed taken action to shut down a bank that signed a deferred prosecution agreement.

      If you or I tried to launder money, we would probably go to jail. But when the employees of a very big bank do so, there are no meaningful consequences.

      This diary is just saying what Warren has said many times. And people are defending banks here? wtf.

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