GAI said that President Obama’s decision to choose Holder, “a white-collar defense attorney from Covington,” as his attorney general, over a “more fiery prosecutor,” appears to have sent “a subtle signal to the financial community” that this administration isn’t going to actually do anything, despite the harsh words.

Cole, the report outlines, was with Bryan Cave LLP — “a white-shoe firm with A-list clients” — before becoming Holder’s right-hand man at the DOJ. One of Cole’s clients while at Bryan Cave LLP, the GAI report shows, was insurance and financial giant AIG.

Cole had done $20 million worth of work for AIG between 2004 and 2008, but his close ties with the company — which was “at the heart of the financial crisis largely because of its noncompliance in regulatory and compliance issues” — didn’t stop Obama or Holder from welcoming him aboard their administration.

The Obama administration’s decision to not appoint an independent counsel to investigate the MF Global scandal, despite more than 60 members of Congress demanding it, also reeks of cronyism, the GAI report details. Obama bundler and former Democratic New Jersy Gov. Jon Corzine was at the center of MF Global.