How Obama Is Guaranteeing The Next Financial Crisis Will Be MUCH Worse
By John Titus
Obama Guarantees Next Crisis by Refusing to Prosecute Recidivist Financial Criminals
Bailout is the first documentary to demonstrate the tight linkage between the financial frauds that caused the crisis and the resulting harm to Main Street. The Department of Justice recently ensured that many more will follow.
By announcing that it will not prosecute “systemic” criminal banking enterprises like HSBC, the DOJ has guaranteed (and likely hastened) the arrival of the next fraud-driven crisis.
The DOJ did not even attempt to back up its claim that prosecuting HSBC would “destabilize the global financial system.” Indeed, Lanny Breuer, the head of the DOJ’s criminal division, said that prosecuting HSBC “could have cost thousands of jobs”–betraying the fact that the DOJ’s real concern was the corporate perpetrator rather than its Main Street victims.
Someone should let Breuer in on the fact that white collar criminal prosecutions have a direct and immediate impact on corporate behavior. The only “systemic” risk at work here is the one created by the DOJ itself–by giving financial criminals a free pass.