February 17, 2013

Too Big to Fail has become Too Big for Trial

Supervising big banks when they break the law…

Senator Elizabeth Warren at the Feb. 14, 2013 Banking Committee Hearing titled “Wall Street Reform: Oversight of Financial Stability and Consumer and Investor Protections.”

[http://www.youtube.com/embed/mavB1lbtIow]

 

“I want to ask a question about supervising big banks when they break the law including the mortgage foreclosures but others as well. We all understand why settlements are important, that trials are expensive and we can’t dedicate huge resources to them but we also understand that if a party is unwilling to go to trial either because they’re too timid or because they lack the resources…”

” We face in very special issues with big financial institutions if they can break the law and drag in billions in profits and then turn around and settle paying out of those profits. They don’t have much incentive to follow the law.”

“I’m really concerned to big to fail has become too big for trial. It just seems wrong”
Wall Street reaction :
Wall Street executives and business lobbyists are responding differently. They have called Warren’s questioning “deeply unfair” and accused her of “shameless grandstanding” and competing to be the “most extreme fringe freshman senator.” Others online¬†continue to largely praise Warren, referring to her as “Senator Elizabeth Warren, noted badass,”
MSN/Politico