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It's Enough to Make Your Blood Boil

Here are two items that will upset you…

First, back in February, Attorney General Eric Holder christened the unofficial official doctrine of "Too Big to Jail."

He told Congress, "The size of some of these institutions [TBTF banks] 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."

Of course, it was only the christening of another neat little name.

The actual doctrine has been official policy of America's Congress, successive presidents and their administrations, and the alphabet soup of regulatory bodies for as long as anyone can remember.

But a funny thing happened on Tuesday.

Someone pushed back…

Sen. Elizabeth Warren (D-Mass.) sent a letter to the Justice Department, the Federal Reserve and the Securities and Exchange Commission.

It was a short letter (you can read it here on Mother Jones). The jist of it was, how come you guys always let banksters settle and never take them to trial?

She summed up her letter by reservedly pointing out, "If large institutions can beat the law and accumulate millions" – I'm not sure why she didn't say billions – "in profits and, if they get caught, settle by paying out of those profits, they do not have much incentive to follow the law."

You go, Elizabeth! Only, someone might want to tell her… too big to jail is the law.

Anyway, one day later, yesterday, the always beleaguered Eric Holder (because he's always been out of his league) said this: "Let me be very clear, there's no bank, there's no institution, there's no individual that cannot be prosecuted by the U.S. Department of Justice. We have had thousands of financially based cases over the last four years."

In other words, completely changing his story.

You go, Eric… hopefully into retirement. Try Mexico, they like you down there.

Then there's this IRS scandal.

Who knew the IRS was an arm of government? I thought it was an extortion arm of the mafia.

But lo and behold, the IRS acts on behalf of the government, which apparently includes terrorizing conservatives.

Yesterday the acting IRS Commissioner, Steven Miller, stepped down amid accusations the agency was giving extra scrutiny to conservative groups who applied for federal tax exemptions.

That's not very nice.

I'm just glad the IRS is two-sided. They impact the President's friends and family, too. Everyone apparently gets theirs.

The President's half-brother certainly "got his" from the IRS – in the form of a very special favor.

A few years back, the Prez's half-brother, Abon'go "Roy" Malik Obama, also the best man at his wedding, set up the Barack H. Obama Foundation to solicit tax exempt contributions (for what, no one really knows).

Only there was little problem. Roy Boy didn't set up a 501(c) tax-exempt entity.

In May 2011, the national Legal and Policy Center filed an official complaint against the non-entity entity.

No worries. The IRS was all over it.

One month later, on June 26, 2011, in record time (just ask any of the conservative groups waiting three years and longer for an IRS ruling on their tax-exempt status), the Foundation was granted tax-exempt status… retroactively (unheard of!) back to December 2005.

According to The Daily Caller, "In addition to running his charity, Malik Obama ran unsuccessfully to be the governor of Siaya County in Kenya. He was accused of being a wife beater and seducing the newest of his 12 wives while she was a 17-year-old school girl." Nice guy. Sure glad they helped him out.

All I'm saying is that it's good to be an American, or not, or a bank, or 501(c).

Have a nice day.

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About the Author

Shah Gilani is the Event Trading Specialist for Money Map Press. He provides specific trading recommendations in Capital Wave Forecast, where he predicts gigantic "waves" of money forming and shows you how to play them for the biggest gains. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.

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  1. Barbara R | May 17, 2013

    If anything, this IRS scandal is MAJOR proof why Congress should have their ability to set tax policy STRIPPED FROM THEM and we should go to a flat tax. I would go so far as setting it up that any member of Congress or the President interfering with tax policy (once a flat tax was established) would go to JAIL – immediately to jail. We should just have a flat tax with no deductions for any reason. The only exclusion should be those under the poverty threshold. Otherwise EVERYONE pays it. The government would have to make do with what they collect from it and their spending would be capped by it – UNDER LAW. I am open as to whether it should be a sales or income flat tax but the code for it should be no more than 10 pages if that.

  2. robert | May 18, 2013

    Having once applied for 501C3 charitable status for an inventors club, I can understand the difficulty involved.
    However a 501C4 is a different animal, basically a cover for secret political contributions.
    I am not sutprised that the IRS wanted to know more about what they were up to since there is no requirement to apply for 501C4 status in the first place.
    Just another "scandal" without merit that the administration's enemies can use to hold up any progress on useful legislation- which has been the avowed purpose of the Republican party since the President's election.
    What else is new?

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