The Inimitable Tiff

…three years later, the megabanks are even bigger, as is the risk they concentrate (see my recent testimony to the Financial Institutions subcommittee of the Senate Banking Committee for details.)  Curiously, their precariousness, as much as their power, is shielding these behemoths from the enforcement of financial fraud laws.

Thankfully, this lawlessness – and it is that – nettles some regulators and prosecutors.  New York Attorney General Eric Schneiderman is mobilizing the resources for a long-overdue investigation of Wall Street practices and hopefully gathering momentum.  But the Obama administration continues to dither – arguing behind the scenes that the financial system is still too weak. This inertia – a government at rest tends to stay at rest – has led to public protest and deeply shaken trust in the financial system.