“One of the reasons that banks remain unpopular with the American public nearly seven years after the crisis is the sense that they have not been held to account for the errors and malpractice that led to the meltdown.”

“The argument is that large banks have been allowed to walk away from their incompetence (to use a generous word) in loan origination and bundling. Regulators and prosecutors have stayed their hand out of an apparent fear that legal action might inadvertently bring down a systemically important institution. To the extent that banks have been punished, it has been in the form of fines that fall on battered shareholders and capital ratios rather than managers.”

“This perception of a “too big to jail” problem goes beyond popular imaginings. In testimony before the Senate last year, Eric Holder, the US attorney-general, admitted the size of banks had “an inhibiting impact” on prosecutions.”

“Now, a non-profit organisation that campaigns for financial reform has taken aim at one of the largest post-crisis settlements.”

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