Wall Street Crimes: President Obama is "effectively encouraging future financial fraud"

[MFrohike]

49. There's a difference between regulations and criminal law

Glass-Steagall was a statute that provided for the regulation of finance. It was not a criminal statute. Thus, its repeal has NOTHING to do with whether a given activity is illegal for the purposes of the criminal law.

Taibbi's point, which is a rehash of others I've read, is that difficult to prosecute is radically different from not illegal. Sarbanes-Oxley was a response to a different situation, but that doesn't make its provisions inapplicable to today's situation. Hell, RICO laws were passed in response to the difficulty of prosecuting the Mafia, but they've been found to applicable in very different situations from their original purpose. Many cases for fraud can be made, but DOJ is unwilling to try. There's a reason that the FHFA is working with the NY AG to investigate and prosecute systemic fraud: the administration has decided not to bother, thus it's up to other entities with relevant jurisdiction. The fact of a federal agency working with a state prosecutor because the federal prosecutor can't be bothered to deal with problems in its own jurisdiction is nothing but shameful.