Failing to Break Up the Big Banks is Destroying America

Failing to Break Up the Big Banks is Destroying America

by WashingtonsBlog

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.
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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.