Obama Declares Big Banks Too Big to Jail
Decision not to prosecute bank's money laundering sparks outrage
By Kevin Spak, Newser User
Posted Dec 12, 2012 1:14 PM CST
This is a Monday, Feb. 27, 2012 file photo of the logo is seen on a branch of HSBC bank in London.   (AP Photo/Kirsty Wigglesworth, File)

(Newser) – The Obama administration officially bought into the idea that big banks are "too big to jail" yesterday, by deciding to fine HSBC instead of criminally prosecuting its vast money laundering operation—which funneled cash to Mexican drug cartels and Saudi banks with ties to al-Qaeda. The stated reason? The White House thought prosecution would upset markets. "It is a dark day for the rule of law," the New York Times laments in an editorial today. If prosecutors can't pursue "a case as egregious as this, the law itself is diminished."

Glenn Greenwald at the Guardian is even more outraged, pointing out that "the US is the world's largest prison state, imprisoning more of its citizens than any nation on Earth." The poor, and racial minorities in particular are locked up at an astonishing rate, often for minor drug offenses. Yet HSBC gets off the hook. "It is truly difficult to imagine corruption and lawlessness more extreme than having the government explicitly place the most powerful factions above the rule of law." Click for Greenwald's full column, or the Times' editorial.

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Showing 3 of 91 comments
oldcarl
Dec 14, 2012 11:47 AM CST
Does anyone really expect the Obama InJustice Department to go after those banks. Wonder how many banks and investment firms contributed heavily to Obama and other Democrats in 2008, 2010, and 2012? Obviously you only slap the hand that feeds you, not cut it off.
Chicagoist
Dec 13, 2012 12:37 PM CST
I guess I know where to invest my money. God I love America!
MattB
Dec 13, 2012 10:14 AM CST
WTF, here we go. I guess our goverment looks @ Big Banks Like Mexico's goverment looks @ the Cartels, TO BIG TO TAKE ON.