WASHINGTON -- Sen. Elizabeth Warren (D-Mass.) raised the stakes of her quest to find out why a single Wall Street bank has not been prosecuted in the aftermath of the financial crisis Tuesday, sending a letter to the heads of three federal agencies.
Warren, a member of the Senate Committee on Banking, Housing & Urban Affairs asked Attorney General Eric Holder, current Securities and Exchange Commission Chairwoman Mary Jo White and Federal Reserve Chairman Ben Bernanke whether they had done any cost-benefit research into prosecuting a bank versus settling with one, which is equivalent to a slap on the wrist for a profitable financial institution.
"Have you conducted any internal research or analysis on trade-offs to the public between settling an enforcement action without admission of guilt and going forward with litigation as necessary to obtain such admission and, if so, can you provide that analysis to my office?" Warren said in the letter.
On Feb. 14, Warren came to her first banking committee hearing and asked federal agencies tasked with bank regulation a related, straightforward question: When was the last time you took a Wall Street bank to trial?
"We do not have to bring people to trial," said Thomas Curry, the head of the Office of the Comptroller of the Currency, the independent bank regulator within the Treasury Department.
Warren then put the question to Elisse Walter, the former SEC chairwoman. Her response: "I will have to get back to you with specific information."
"There are district attorneys and United States attorneys out there every day squeezing ordinary citizens on sometimes very thin grounds and taking them to trial in order to make an example, as they put it. I'm really concerned that 'too big to fail' has become 'too big for trial,'" Warren said.
Warren submitted the question to the OCC for the record, and they responded last week that no, they had not conducted research into trade-offs. "The OCC does not have any internal research or analysis on the trade-offs of settling without an admission of liability," the OCC responded, according to Warren's letter.
Now it's up to Bernanke, Holder and White to answer.
Read the letter here
http://www.huffingtonpost.com/2013/05/14/elizabeth-warren-banks_n_3271983.html#slide=1749190


Elizabeth Warren, a Great Investment

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Posted on May 14, 2013
AP/Cliff Owen

Sen. Elizabeth Warren, D-Mass., listens to a witness at a Senate Banking Committee hearing.
Elizabeth Warren does great email. One payoff of my pittance of a contribution to her grass-roots funded campaign—I regret not contributing more—is that I am regularly alerted by the new Massachusetts senator to the favoritism of our Congress toward Wall Street.
That’s how I was reminded this week that Congress is about to let the interest rate charged for new student loans double to 6.8 percent at a time when the too-big-to-fail banks that caused the Great Recession continue to be bailed out at the rate of 0.75 percent. Yes, the banks pay less than 1 percent for money that we the taxpayers lend them. I know that such statistics are thought to be boring, but as Warren explained, the rate that students will have to pay “is nine times higher than the rate at which the government loans money to the big banks.”
The student loan interest rate that had been temporarily cut in half back in 2007 was once again set to double, but instead of pushing for the status quo as Congress did last year, Warren has upped the ante with legislation that would cut the student loan rate way down to the near zero that the big banks enjoy. As Warren put it in her characteristically no bull style:
“The federal government is profiting off loans to our young people while giving a far better deal to the same Wall Street banks that crashed our economy and destroyed millions of jobs. That’s why I’ve introduced the Bank on Students Loan Fairness Act as my first bill in the Senate: To allow students to borrow money at the same rate as the biggest banks.
” … Why should the big banks get a nearly-free ride while people trying to get an education pay nine times more?” Warren asked. “It isn’t right.

The justification of near zero rates 

of interest for the banks is that they will make loans available that will stoke the economy, but quite the opposite has happened. The banks have been slow to make housing and business loans while feathering their own nests with outsized executive bonuses and costly acquisitions of other financial institutions. In contrast, student loans amounting to more than $1 trillion exceed the total outstanding credit card debt in the U.S. and represent a major contributor to consumer purchasing power.
Students actually spend their loan money on surviving as consumers in a tight economy, while learning skills needed for the economy of the future. On the other hand, the already too-big-to-fail banks have used the government’s free money to become even more obscenely powerful.
Then, too, the federal government’s enormous subsidy to the banks extends far beyond the provision of low-interest money. The so-called quantitative easing program, now reaching into the trillions of dollars of government subsidy, continues at the astounding rate of $85 billion in Federal Reserve expenditures every month to take toxic assets off the books of the banks and to otherwise float the very financial institutions that, as Warren never tires of pointing out, caused the great meltdown of our economy.
How astonishing to have a public servant who actually cares to inform the public about the inner workings of the system of crony capitalism that has wedded big government with big business. This comes at the expense of the free market that corporate lobbyists delight in invoking as an ideal while they subvert it as a reality. 
Those seeking to join Warren in taking a stand on behalf of students attempting to survive in an economy that the bankers have come close to destroying should get behind her bill. Unless Congress acts, student loan rates will automatically double in less than two months. 
They should also heed Warren’s call to aid the campaign of Ed Markey to fill the other Senate seat from Massachusetts made available by the resignation of John Kerry to become secretary of state. As a long serving member of the House, Markey distinguished himself by being a leader in the battle against the radical deregulation of Wall Street. Markey, as early as 1992 when he was chairman of the House subcommittee on telecommunications and finance, sounded the alarm on the danger of the unregulated derivatives in housing mortgages and other collateralized debt obligations that ended up causing the Great Recession. 
It would be great if Massachusetts, the home of the real tea party revolt, could now elect a second senator with a powerfully informed record of serving the consumer interest. As Warren put it, “Ed will fight for accountability on Wall Street—to end ‘Too Big to Fail’ and ‘Too Big to Jail’ once and for all.” She could use Markey’s help, and so could we.