We've often wondered whether Goldman Sachs (NYSE: GS) is still too big to fail. But a Forbes columnist raises an interesting point: Is Goldman also too big to criminally prosecute?

His thesis is that the firm is so big and powerful as a Treasuries dealer that a criminal prosecution would radically upend the market, with grave consequences. The firm's inability to trade Treasuries would spread and hamper its ability to make markets in other securities.

Central banks and other broker dealers also would be wary of taking on Goldman as a counterparty, the columnist notes.

"The entire fabric of the global financial system would be threatened. I'd advise strongly against any such  step."

But would this sort of dislocation to the most powerful firm really bring the government bond market to its knees? It might wreak havoc for a few days, but wouldn't other firms fill the void?

There might a rough transition, and costs might spike. But the market likely wouldn't cease to function. In fact, you would have to think that competitors are hoping for such a prosecution, which would open an unheard of opportunity for them.

It's unclear how this issue is playing out in the minds of prosecutors. In any case, even with the caustic Senate report, you do not get the sense that the firm faces a huge threat of criminal prosecution at this point.

For more:
- here's the column

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