Two senators ask Holder to clarify 'too big to jail' comments

Two senators are pressing Attorney General Eric Holder to clarify comments he made last week that it is difficult to prosecute the heads of some large banks for illegal activities because of the potentially negative effects on the economy. 

Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), both members of the Senate Banking Committee, wrote to Holder on Tuesday asking him to explain his "too big to jail" remarks about being restricted to taking enforcement actions on money laundering and terrorism financing activities by banks because of the size of the financial institution. 

"Is it truly the position of the Department of Justice that some financial institutions are large enough that their management is above prosecution in the case of a serious crime?" they wrote. 

They also asked where Justice received its economic assessment data that may be deterring them from moving forward with prosecuting any alleged crimes. 

"Like many of our colleagues, we believe that criminal behavior at any institution ought to be prosecuted, and responsible parties held accountable," they wrote.

In a Senate Judiciary Committee hearing on March 6, Holder said, "I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. And I think that is a function of the fact that some of these institutions have become too large."

Warner and Corker argued that the Dodd-Frank financial reform law is designed to prevent economic damage from the failure of any systemically important institution.  

"If you believe that major impediments to this objective remain or somehow hinder the ability of the Justice Department to pursue criminal prosecutions, we would expect you to clearly articulate your concerns so that we or the appropriate regulators can immediately address them," they wrote.  

"If the Administration believes that the orderly liquidation process is insufficient in some respect, then the Administration and Congress should address any necessary changes right away to ensure that no institution is “too big to jail.”

Meanwhile, the senators say they expect Holder will continue to "pursue any individuals who perpetuate financial crimes as aggressively as possible."

"We believe strongly that no institution and no individual or executive should be above the law."