Elizabeth Warren seems to be living up to her reputation. Her latest salvo is a letter she wrote to the Fed, SEC and Justice Department asking them for evidence on how a settlement
that doesn't require a bank to admit guilt would be better policy than
taking the bank to trial. She comments, "if a regulator reveals itself to be
unwilling to take large financial institutions all the way to trial -
either because it is too timid or because it lacks resources - the
regulator has a lot less leverage in settlement negotiations and will be
forced to settle on terms that are much more favorable to the
wrongdoer.
The consequence can be insufficient
compensation to those who are harmed by illegal activity and inadequate
deterrence of future violations. If large financial institutions can
break the law and accumulate millions in profits and, if they get
caught, settle by paying out of those profits, they do not have much
incentive to follow the law."
She sent the same basic letter to OCC without getting much satisfaction. Will she get a decent response from the three agencies listed?
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