The Federal Deposit Insurance Corp is supposed to insure deposits and regulate banks, but the agency has helped the banksters avoid trial for their crimes since the 2008 financial meltdown. The LA Times reports that the very agency responsible for investigating and prosecuting bank procedures that crashed our economy has been quietly settling charges out of court – and out of the view of the American public.
Since 2007, the agency has settled numerous charges of bankster wrongdoing, but agreed to a “no press release” clause in the settlement agreements, so the big banks have avoided public scrutiny. A spokesman for the FDIC said they only announce the settlements “when damage payments are large and media interest [is] intense.” However, the FDIC didn’t announce a $54 million settlement with Deutsche Bank for causing the collapse of of The Independent National Mortgage Corporation, known as IndyMac.
And that settlement is just part of the $787 million the FDIC has recovered since 2008. The “no-disclosure” clause may have allowed the FDIC to avoid the expense of taking on the big banks in court, but the practice also allowed banksters to get away with alleged crimes, like money laundering, foreclosure fraud, and mortgage fraud. The settlements simply become a cost of doing business for the banks.
It’s time to hold the banksters accountable. If too-big-to-fail means too-big-to-jail, then break up the banks and charge the banksters for their crimes.