The Deputy Attorney General in the Obama/Holder Justice Department used a speech to the American Bankers Association in New York yesterday virtually to announce that this DoJ will never prosecute a banker, no matter what his/her crimes.
Lanny Breuer enthused to the assembled lawyers, many of whom represent banks, that "increased use of deferred prosecution agreements and non-prosecution agreements over the last decade had a transformative effect" on corporate compliance across the globe, allowing good firms to rehabilitate while punishing [?] bad actors. "The result has been, unequivocally, far greater accountability for corporate wrongdoing—and a sea change in corporate compliance efforts. Companies now know that avoiding the disaster scenario of an indictment does not mean an escape from accountability." But they will escape indictment, if Obama's Covington and Burling gang stay on the job at DoJ.
Breuer added that in the bad old days, "When the only tool we had to use in cases of corporate misconduct was a criminal indictment, prosecutors sometimes had to use a sledgehammer to crack a nut. More often, they just walked away. Now, companies know that they are much more likely to face punishment than they were when our choice was limited to indicting or walking away." He presented this as a new era, praising especially Barclays Capital non-prosecution agreement and wonderful cooperation.
The New York Times reports the Obama DoJ is now doing a deal with Standard & Chartered, involving a "much smaller fine" than StanChart had to pay to New York State for money laundering.
Holder's enabling continues: It was leaked on Monday and reported in Huffington Post that there will not be any criminal prosecutions of banks' mortgage securities fraud by the so-called "Schneiderman" task force of DoJ officials and state attorneys general. This task force, a much-praised move by Obama, is actually under Brewer, but New York Attorney General Eric Schneiderman was given titular leadership to bring him back into the Obama fold and burnish the task force.
So, the Holder "no charges" enabling list now includes Goldman Sachs securities fraud, MFGlobal gross violations of fiduciary law, HSBC money laundering for drug cartels and terrorists, JPMorgan Chase's rigging of credit default swaps market, and the largest Wall Street banks' mass mortgage-securities fraud.
Lyndon LaRouche said, "It'll all be blown out. The failure to prosecute means these officials have to be removed—beginning with Obama."