People were really angry when after the country was almost plunged into ruin by the financial industry and bailed out by taxpayers that no one went to jail.  We heard a lot from politicians about ‘too big to fail’ and after their rescue we heard some bankers crow about how they paid back all of the money that the government provided in order to bail them out.  After that, most of the banks tightened their grip on their money and all but refused to loan any to the Americans who so badly needed it.

Although there was a lot of talk about getting to the bottom of what brought about this near disaster and holding those responsible accountable, nothing ever really happened to anyone of consequence.  Those who were responsible probably knew all along that nothing would happen to them though some feigned some outward fear of punishment in order to placate us average Americans; the little people.

After all, everyone knows that all politicians who expect to be successful need the support of ‘big money’ to finance their expensive election campaigns.  And had bankers and Wall Street not even bothered to feign fear after authoring such a terrible deed surly the little people would have believed that the government was in cahoots with them all along.  Of course, what the average American thought about this unfortunate incident didn’t really matter but as with all politicians and political situations, visuals are important.

Whether or not you agree with the saying that ‘time heals all wounds’ people do tend to forget and those things that at one time may have made their blood boil become distant memories and much less disconcerting.  Although we may think about how bankers and Wall Street executives walked away from something that average Americans would have spent many years incarcerated for, we probably quickly dismiss the thought and move on with our lives.

But there is a problem bubbling just beneath the surface in the banking industry right now that could embroil a lot of rich and powerful people in a quagmire that will be hard to escape.  Again, even if they don’t escape it, the most they will likely suffer is a slap on the wrist, momentary embarrassment and a fine that to them would amount to the equivalent of the average American leaving a two dollar tip.

This problem first surfaced in 2010 and involves the HSBC.  Although the resolution was somewhat controversial, supposedly it was handled then.  However; according to an article in The Guardian by Paul Lewis, it has resurfaced because there is concern by some that the stipulations in that agreement are not being taken seriously.  This time though I doubt that we will hear the mantra ‘too big to fail’; only because it doesn’t fit.

We probably won’t hear anything like that because if we did, the most appropriate catch phrase would be ‘too above the law to fit under it.’  When the Department of Justice (DOJ) addressed and supposedly began to mitigate this problem, which first appeared in 2010, with the intension to ultimately totally correct it, the DOJ assigned an independent monitor as overseer.

In May of 2014 while continuing to work the HSBC problem the DOJ forced a company called Credit Suisse to pay a $2.6 bn. fine for its part as an organization suspected of involvement in tax evasion.  According to the article in ‘The Guardian’, at that time, Attorney General Holder said; “This case shows that no financial institution, no matter its size or global reach, is above the law.  Credit Suisse conspired to help US citizens hide assets in offshore accounts in order to evade paying taxes.  When a bank engages in misconduct this brazen, it should expect that the Justice Department will pursue criminal prosecution to the fullest extent possible, as has happened here.”

Unfortunately for him and the many others who crafted the HSBC solution and thought that their work was complete, it appears that much more still remains to be done.  And as to those customers that used HSBC for illegal purposes who could also find themselves trapped in this web of attempted deception in their effort to hide their personal assets, their problems may have just begun.

In showcasing the DOJ’s progress and accomplishment regarding the HSBC, the attorney general said that “this case shows that no financial institution… is above the law.”  The key operative words here are ‘financial institution.’  What about the high-level, powerful individuals who were involved in this tax evasion scheme; what will happen to them?

I have said before that there are some problems that arise whose complexities defy our ability to navigate them so we must leave it to our elected officials to address them and trust that they will do so in the best interest of America and our overall best interest.  Whether we cannot navigate these complex issues because there is certain information that politicians are privy to, which we are not or we simply don’t have the mental acumen is not the point.

The point is that if tossing all of these high-level crooks into jail and throwing away the key would put the American economy and possibly even the world economy into a tailspin which could only result in disaster, I would say don’t do it.  I think that most Americans would say the same thing.

Those billionaires and millionaires who participate in these tax evasion schemes know too that most sensible people will choose the common good and survival of America over their anger and abhorrence of the arrogance and greed of far too many of the rich.  It seems that the best – and maybe only – way to really get the attention of the rich is through their money.

So what the government needs to do to hold the rich accountable while at the same time making them think twice before they repeat their despicable acts while average Americans carry more than their fair share of the load is to charge them a fine that would to them amount to more than what the average American would leave as a tip.  They need to really make them feel it: make them hurt!  Most of the rich probably fear losing their money more than they do going to jail anyway.  Taking it from them in a significant (emphasis on significant) amount would be like raining fire down on them.

Governments from the federal level all the way down to the local level have no problem with going after people who are not rich and powerful; especially when it comes to taxes.  It is not unheard of for them to spend exponentially larger sums to collect what, in their overall budget, amounts to a pittance compared to what they are trying to collect.

Most people know that until we have a perfect world and America forms a perfect union – whether we like it or not, we are going to have those who, at all levels, are privileged and pampered.  Although Americans might realize and accept that government can’t throw these high-level crooks in jail, they also know that it could do a lot more than it currently does to make them truly feel the pain.  The fact that it has not yet done this is what really has citizens throughout the country suspicious about our government and angry with our politicians.

Bring the pain!  Government doesn’t seem to mind doing this to the average American, why not do it to the rich and powerful as well.

Eulus Dennis