In USA Today, Public Citizen and libertarian Cato Institute join forces against ‘Too Big to Jail’

A joint op-ed by Public Citizen’s Lisa Gilbert with libertarian Cato Institute’s Mark Calabria was published recently in USA Today.

The unlikely pair – considering Public Citizen’s progressive perspective and Cato’s libertarian stance – call Attorney General Eric Holder to task for the Department of Justice’s timid treatment of criminal banks.

Acknowledging the Credit-Suisse guilty plea that Justice recently obtained, Gilbert and Calabria write, “we certainly applaud the DOJ’s action, a criminal guilty plea from a foreign bank doesn’t erase the many non-prosecutions and deferred prosecutions of the too-big-to-fail banks at the heart of the financial crisis.”

Advocates and activists on the left and right demand action. What can Justice do to start restoring faith in a system that imprisons low-income lawbreakers but allows Wall Street’s worst to walk free?

Gilbert and Calabria offer a next step:

Crimes require the action of individuals. The DOJ has yet to articulate why proceeding with criminal prosecution against individuals would undermine the safety of the institutions at which they work or the broader economy.

We are not advocating criminalizing irresponsible behavior after the fact or abandoning due process protections. We are advocating a justice system that treats all equally, regardless of size or importance to the broader economy.

[…]

Holder wants to be “very, very, very, very clear,” that no bank that commits crimes is too big to jail. To ensure that clarity, we should enhance transparency on the process.

Read the full USA Today op-ed here.

Rick Claypool is the online director for Public Citizen’s Congress Watch division.