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DOJ explains its decision not to prosecute big banks

 |  February 9, 2012

Scott Hammond, head of criminal enforcement at the DOJ’s Antitrust Division, has outlined to Global Competition Review some of the concerns the DOJ has with prosecuting banks and financial institutions. The consideration of collateral damage was paricularly weighty, as antitrust enforcement of banks would be brought into the orbit of a market with its own regulations, as well as other enforcement agencies like the SEC.

Yet there is also the belief that financial institutions are receiving different treatment by the DOJ because of the economic climate. As such, the DOJ’s actions over the ongoing Libor probe will be watched to see if the administration’s attitude toward prosecution of banks will change or remain the same. 

Source: GCR (subscription required)


Related content: Libor Litigation and the Role of Screening: The Need for Enhanced Compliance Programs (Rosa Abrantes-Metz, Global Economics Group & NYU Stern Schol of Business)