May 7, 2014

Question of the Week: Is the government finally abandoning its “too big to jail” approach to going after bank fraud?

By the C|C Whistleblower Lawyer Team

Too big to jailThe Justice Department just announced criminal charges against Credit Suisse and BNP Paribas, two of Europe’s largest banks.  In trumpeting the government’s aggressive stance, US Attorney Eric Holder emphasized that no company or individual is too big to jail, stressing that “a company’s size will never be a shield from prosecution or penalty.”   This is in sharp contrast to the government’s former approach of declining to criminally prosecute big banks for fear of destabilizing them.  The government has taken a lot of criticism over its failure to criminally prosecute banks and bank executives that commit financial fraud.  Remember the harsh words of the Honorable Jed Rakoff, who said that failing to criminally prosecute banks and bank executives is “one of the more egregious failures of the criminal justice system in many years.”

So what do you think?  Is the government changing its tune?

Is the government finally abandoning its “too big to jail” approach to going after bank fraud?

    Please let us know why in the comment section below.

     

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    2 Responses to “Question of the Week: Is the government finally abandoning its “too big to jail” approach to going after bank fraud?

    1. It’s too early to tell whether the government is going to pursue a more aggressive path with bank fraud. All indications are that big fines will continue to be the mainstay in the government’s enforcement approach, not criminal prosecution or jail time.

    2. I think it’s a great start, but I have to say that I don’t think Justice is going to radically change course and start locking up individuals responsible for financial crimes at large banks or pursuing criminal charges against big banks on the regular. It would be nice though and I hope that I am wrong.