Sen. Elizabeth Warren (D-Mass.) took on Attorney General Eric Holder's admission that some banks are too big for the Justice Department to prosecute, asserting that Holder's statement illustrates why the financial institutions should be held accountable.
“It has been almost five years since the financial crisis, but the big banks are still too big to fail," Warren said in a Wednesday statement. "That means they are subsidized by about $83 billion a year by American taxpayers and are still not being held fully accountable for breaking the law. Attorney General Holder’s testimony that the biggest banks are too-big-to-jail shows once again that it is past time to end too-big-to-fail."
Earlier Wednesday, Holder testified before the Senate Judiciary Committee during a hearing on Justice Department oversight. During the hearing, Sen. Chuck Grassley (R-Iowa) asked Holder about the "slippery slope" of the "too big to jail" mentality in cases of bank prosecution.
"I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if we do prosecute — if we do bring a criminal charge — it will have a negative impact on the national economy, perhaps even the world economy," Holder said. "I think that is a function of the fact that some of these institutions have become too large."
The Huffington Post's Mark Gongloff reported:
Holder's comments don't come as a total surprise. His underlings had already made similar confessions to The New York Times last year, after they declined to prosecute HSBC for flagrant, years-long violations of money-laundering laws, out of fear that doing so would hurt the global economy. Lanny Breuer, formerly in charge of doling out the Justice Department's wrist slaps to banks, told Frontline as much in the documentary "The Untouchables," which aired in January.
Some observers have defended the Justice Department, suggesting that prosecuting law-breaking banks would amount to a death penalty that could upset the financial system and trigger another recession -- although nobody really knows if it would do any such thing. But by not prosecuting law-breaking banks, and confessing to its terror of prosecuting those banks, the Justice Department has waved a big checkered flag to the biggest banks to go ahead and break all of the laws they want.
Since entering office in January, Warren has made a splash on Capitol Hill as a member of the Senate Banking, Housing and Urban Affairs Committee. Last week, the freshman senator pressed Federal Reserve Chairman Ben Bernanke on whether the government would get tough on the "too big to fail" institutions.
"Big banks are getting a terrific break, and little banks are just getting smashed," Warren said.
Earlier in February, Warren took bank regulators to task over the lack of trials for Wall Street banks.
"There are district attorneys and United States attorneys out there every day squeezing ordinary citizens on sometimes very thin grounds and taking them to trial in order to make an example, as they put it," she said. "I'm really concerned that 'too big to fail' has become 'too big for trial.'"
Also on HuffPost:
Introduces Financial Product Safety Commission
Elizabeth Warren <a href="http://www.huffingtonpost.com/2009/03/10/financial-product-safety_n_173691.html" target="_hplink">announced</a> a bill creating a Financial Product Safety Commission with House and Senate Democrats in March 2009. The body was designed to have oversight over mortgages and other financial instruments to protect consumers against predatory practices. She said if the agency had existed before the subprime collapse then "there would have been millions of families who got tangled in predatory mortgages who never would have gotten them." HuffPost's Ryan Grim <a href="http://www.huffingtonpost.com/2009/03/10/financial-product-safety_n_173691.html" target="_hplink">reported</a>: <blockquote>Without all these toxic assets on banks' balance sheets, the institutions wouldn't be on the brink of collapse and the recession would be more manageable. "Consumer financial products were the front end of the destabilization of the American economic system." Sen. Charles Schumer's cosponsorship of the bill is notable because of his proximity to Wall Street. The bill's merit, the New York Democrat said, is that it regulates the actual financial product rather than the company producing it.</blockquote>
Geithner Opposes Her Heading CFPB
Tim Geithner expressed opposition to her nomination for the Consumer Financial Protection Bureau, <a href="http://www.huffingtonpost.com/2010/07/15/tim-geithner-opposes-nomi_n_647691.html" target="_hplink">reported</a> HuffPost's Shahien Nasiripour. Geithner thought Warren's views on the big banks and Wall St. were too tough. Warren's oversight of the Treasury department as a watchdog for TARP apparently irked Geithner, agressively <a href="http://www.youtube.com/watch?v=pz7ruJw6byQ" target="_hplink">questioning him</a> during Congressional hearings: <blockquote>While her grilling of Geithner in September, over what members of Congress have called the "backdoor bailout" of Wall Street through AIG, inspired the "squirm" video, just last month Warren pressed Geithner on the administration's lackluster foreclosure-prevention plan, Making Home Affordable. Criticizing him for Treasury's failure to keep families in their homes, she questioned Treasury's commitment to homeowners.</blockquote>
Ready For A Fight
Elizabeth Warren <a href="http://www.huffingtonpost.com/2010/03/03/fight-for-the-cfpa-is-a-d_n_483707.html" target="_hplink">reiterated her desire</a> for a strong Consumer Financial Protection Agency to HuffPost's Shahien Nasiripour: <blockquote>"My first choice is a strong consumer agency," the Harvard Law professor and federal bailout watchdog said in an interview with the Huffington Post. "My second choice is no agency at all and plenty of blood and teeth left on the floor."</blockquote>
Named Interim Chief Of CFPB
In September of 2010, HuffPost's Ryan Grim <a href="http://www.huffingtonpost.com/2010/09/13/elizabeth-warren-interim-cfpb-chief-consideration_n_715457.html" target="_hplink">reported</a> that Elizabeth Warren was being considered as a candidate for interim director of the Consumer Financial Protection Bureau. Days later the announcement was <a href="http://www.huffingtonpost.com/2010/09/15/white-house-taps-warren_n_715291.html" target="_hplink">official</a>. The move allowed Warren to set up the groundwork for the agency immediately without risking a GOP filibuster of her nomination, a response that seemed certain giving the <a href="http://www.boston.com/news/nation/washington/articles/2010/09/15/opposition_mounts_for_interim_appointment/" target="_hplink">public opposition expressed</a> by some Republican senators. When it came time to put forth an appointment for a longterm CFPB chief, Warren was overlooked, partially because she was seen as unfeasible, but also, HuffPost's Shahien Nasiripour <a href="http://www.huffingtonpost.com/2011/07/18/republican-opposition-to-elizabeth-warren_n_902165.html" target="_hplink">reported</a>, because she was a divisive figure within the Obama administration: <blockquote>Ultimately, Warren wanted the job, allies said. And near-united opposition from Senate Republicans -- 44 of them signed a letter saying they'd oppose any nominee -- should have made it easier for Obama to nominate her, since the Republicans publicly said they wouldn't support anyone for the role. Instead, the Republicans made it easy for the White House to deflect questions about the administration's lack of support for Warren. Asked how she squared the administration's public statements with its private ones, Warren declined. "I really have to say, I'm just not there. I'm not in the intricacies of the political part of this, and I can't comment," Warren said Monday. "The truth is I don't know anything about it."</blockquote>
Chats With HuffPost About Bureau
In October 2010, shortly after being tasked with building the groundwork for the CFPB, Warren stopped by HuffPost to chat with Ryan Grim and Shahien Nasiripour "This is the first real agency we've built in the 21st century -- well, there's Homeland Security, but one for the people. And it means we ought to think differently," said Warren. "The government can talk to people and people can talk to the government differently than when the Consumer Product Safety Commission was built, or when the FDA was built. And if we do this right, that should change the whole dynamic of who this agency really is." HuffPost's Ryan Grim <a href="http://www.huffingtonpost.com/2010/10/07/elizabeth-warren-consumer_1_n_754026.html" target="_hplink">reported</a>: <blockquote>By gathering information, contracts and documents from homeowners and consumers, and allowing watchdog groups and individual concerned citizens access to those documents, the agency can exponentially expand the manpower it has to review the operations of banks and lenders. The goal would be to become aware of a particularly fraudulent practice before it is rampant and insulates itself in the financial services industry.</blockquote> For full video of the interview, click <a href="http://www.huffingtonpost.com/2010/10/07/elizabeth-warren-consumer_1_n_754026.html" target="_hplink">here</a>.
GOP Calls Her A Liar
In May, Warren was called to testify before a House subcommittee and defend the merits of the CFPB. Some of the questions submitted by Republican representatives appeared confused and at times aggressive, leaving Warren to correct them on some basic facts about the actual purpose of the bureau. HuffPost's Mike McCauliff <a href="http://www.huffingtonpost.com/2011/05/24/elizabeth-warren-liar-gop-facts-cfpb_n_866505.html" target="_hplink">relays</a> one particularly contentious moment: <blockquote>The subcommittee chairman, Rep. Patrick McHenry (R-N.C.), began the proceedings by suggesting Warren had lied to the committee in a previous hearing that had questioned the CFPB's role in offering advice to state attorneys general negotiating a settlement with abusive mortgage servicers. At the time, Warren said she was proud her agency had been able to help, at the request of the treasury secretary. But McHenry brought up the memo again, suggesting it showed that she hid a larger role in the negotiations from Congress. "This is our job, and we're trying to do our job, to be helpful to other agencies, and to help those agencies to hold those who break the law accountable," Warren said, repeating that she was proud of the work.</blockquote>
Announces Senate Run
Elizabeth Warren <a href="http://www.huffingtonpost.com/2011/09/13/elizabeth-warren-senate-massachusetts_n_960510.html" target="_hplink">announced</a> on September 14, 2011 that she was running for the United States Senate seat currently held by Scott Brown (R-Mass.) "After listening to people all across our state who know that we can do better, folks who are frustrated like I am that Washington just doesn't get it, I'm running for the Senate so I can fight every day for Massachusetts families," Warren <a href="http://www.huffingtonpost.com/elizabeth-warren/senate-announcement_b_961624.html" target="_hplink">wrote on The Huffington Post</a>.
One month into her campaign to secure the U.S. Senate seat currently held by Scott Brown in Massachusetts, Elizabeth Warren raised $3.15 million, largely <a href="http://www.huffingtonpost.com/2011/10/10/elizabeth-warren-raises-3_n_1003836.html" target="_hplink">from small donations</a>. According to a campaign email, 96 percent of donations were under $100. "These are pretty amazing numbers for our first official finance report, raised in a very short period of time," she said in an email to supporters. Warren's campaign has also attracted <a href="http://www.huffingtonpost.com/2011/10/18/elizabeth-warren-builds-s_n_1018334.html" target="_hplink">large liberal donors</a>, including colleagues from Harvard and well-known liberal donors like George Soros, Barbra Streisand, and DreamWorks CEO Jeffrey Katzenberg. Warren <a href="http://www.huffingtonpost.com/2012/01/11/elizabeth-warren-scott-brown-fundraising_n_1199680.html " target="_hplink">raised</a> an impressive $5.7 million in the fourth quarter of 2011. In early January, the candidate's <a href="http://www.huffingtonpost.com/2012/01/16/elizabeth-warren-money-bomb-fundraising_n_1208511.html?ref=mostpopular" target="_hplink">money bomb</a> pulled in more than $100,000 in just one weekend.
Elizabeth Warren and Sen. Scott Brown (R-Mass.) <a href="http://www.huffingtonpost.com/2012/01/23/elizabeth-warren-scott-brown-attack-ads_n_1223574.html" target="_hplink">signed a pledge</a> to curb third-party attack ads. If either campaign breaks the agreement, they would donate half the cost of the outside ad to a charity of their opponent's choice. "This may not work," <a href="http://www.politico.com/blogs/david-catanese/2012/01/warren-this-may-not-work-112119.html" target="_hplink">Warren said in an email to supporters</a>. "But there's enough at stake to make it worthwhile to try to take back this election."