The opening line of a December 11, 2012 New York Times
editorial on federal and state authorities choosing not
to indict HSBC for money laundering reads: "It is a dark day for the rule of law."
It may be a dark day for the rule of law, but it's business as usual for the banks.
America's heralded and frighteningly powerful Department of Justice, along with all of the not so heralded or frightening banking regulators, simply refused to prosecute Britain's biggest bank out of fear of "collateral consequences."
In other words, they're "too big to prosecute."
That's what Andrew Bailey, the chief executive-designate of the Prudential Regulation Authority, said about the usual deferred prosecution agreement that accompanied HSBC's $1.9 billion fine. The Prudential Regulation Authority is set to replace the U.K.'s Financial Services Authority - the country's current toothless watch dog,
It's just another example of too big to fail and too big to jail.
Deferred prosecution agreements and hefty fines levied against the world's TBTF banks have become commonplace. Still, there are relatively few criminal charges, just wrist-slapping, don't-do-it-again fines and public spankings.
It is a dark day for the rule of law because the money cloak has effectively been cast over all things having to do with justice.
Let's call it what it is: buying immunity.
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