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The "why can they" I can't really address, but the "why do they" is interesting: state AGs (including TX, who brought the suit) are occasionally directly electe
by TT3351 6y ago
The "why can they" I can't really address, but the "why do they" is interesting: state AGs (including TX, who brought the suit) are occasionally directly elected positions, and hence tend to feel more political pressure than the federal DoJ. Another comment on this page has brought up the idea of the Chickenshit Club; feds only bring cases they know they will win to burnish their personal careers.
- redis_mlc 6y ago> the idea of the Chickenshit Club It's actually true. There's a letter that was circulated to major companies to not fund legal cases for executives vs. the DOJ, and the SEC generally won't prosecute well-funded plaintiffs, or really any case they're not 100% sure about. An example of the failure of the DOJ was against Countrywide. The owner had around $1 billion to fight the DOJ and wasn't convicted, with just a patsy getting the guilty plea. One of their regulatory capture techniques was to offer Representatives mortgages at lower rates than the public: https://www.theguardian.com/business/2013/oct/23/bank-of-america-countrywide-guilty-fraud https://www.theguardian.com/business/2013/oct/23/bank-of-ame...