Eric Holder Doctrine: Decriminalize Big Crimes

see also Guest Post: Why The Government Is Desperately Trying To Inflate A New Housing Bubble
http://www.zerohedge.com/news/2013-03-25/guest-post-why-government-desperately-trying-inflate-new-housing-bubble

The problem with the theory that criminal prosecution of the banks could have a negative effect on the world economies is that the banks have already had their effect on the world economy. Along with their own well-deserved hit to their reputations they took the U.S. reputation and probably the whole Eurozone with them.

Refusing to prosecute is like saying we should not prosecute organized crime — or even the same crimes committed by smaller institutions — because someone might get killed or jailed or swindled out of more money than they already lost.
Our rating has dropped by all accounts in all the rating services — a consequence of not getting our house in order and not controlling institutions whose importance is obviously parallel to that of a water or electric utility. And people are still losing wealth and homes, thus undermining any prospect of a true economic recovery.
Eric Holder’s logic is simply not sustainable and the people of Maryland are doing the best they can to keep criminal banks out of their state. We should all do that, and do what the State of New York came close to doing — revoking the license of criminal banks to ply their snake oil financial products within their state. Now that does something to protect the public and puts everyone on notice that doing business with criminal mega-banks is risky business no matter what the smiling bank representative tells you.
The biggest flaw in Holder’s so-called logic about the banks being too big to jail is that an important part of justice has been thwarted. In fraud cases the victim receives some restitution from a receiver appointed after the culprit’s assets are seized. That can’t happen as long as we avoid criminal prosecution. And until there is criminal prosecution judges will continue to think that borrowers are deadbeats instead of victims.
Investors is the fake mortgage backed bonds issued by empty REMIC trusts that were never funded and thus never entered into a transaction in which they acquired loans deserve restitution. Clawing back the money held in the Cayman’s, Cyprus and other places can never happen as long as criminal prosecution is avoided.
The trust we earned from world central bankers,investors and borrowers has been destroyed and that is what is causing economic problems all over the world. Nobody knows where to put their money or even what currency will ultimately survive. This uncertainty is undermining our claim to moral superiority across the board in matters of state as well as commercial activity. We have opened the door to allowing Chinese firms to take the lead, like Alibaba which has quietly become larger than Amazon and EBay combined and is on track to become the world’s first trillion dollar company.
If we truly want to survive and prosper we can show the world that we know how to do the right thing rather than become an accessory during and after the fact of a continuing crime that ranks as the greatest fraud in human history. When investors get a check from a court-appointed receiver in a criminal case, when we see bankers go to jail, and when the amount demanded from borrowers is reduced by payments to the banksters, THEN confidence will be restored along with wealth, investment and employment.
We are pursuing a going out of business strategy. By holding back on the basis of the Holder Doctrine we are confirming that we lost our moral high ground. Someone will fill that void and don’t think for a minute that the Chinese are not acutely aware of their opportunity.
Remember when we made fun of Japanese products as cheap unreliable imports? They fixed that, didn’t they. The Chinese are now spreading out creating new standards of morality in the marketplace such as not releasing money to an online seller until the buyer is satisfied.

It won’t be long before Chinese currency and currencies pegged to Chinese currency become the standard medium of value replacing western currencies, unless we change and start running a country that controls and disciplines its players domestically and on the world stage.

Money-laundering firm should get no welcome in Maryland
http://www.baltimoresun.com/news/opinion/oped/bs-ed-hsbc-20130325,0,1565911.story

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