I don’t know how i missed this Thursday, but I’ll believe it when I see it:
The U.S. Department of Justice issued a memo on Thursday containing new guidelines stating that it will pursue the prosecution of individual employees, and not just their companies, for their role in precipitating the financial crisis in 2008.
Many have wondered why the DOJ has not previously made the prosecution of these individuals a priority while the Department has entered into multi-billion dollar settlements with the nation’s largest banks in the last two years. The DOJ has settled with JPMorgan Chase (a then-record $13 billion in November 2013), Citi ($7 billion in July 2014), and Bank of America (a record $16.65 billion in August 2014) for selling toxic-mortgage backed securities to investors in the run-up to the crisis.
The memo was sent to all U.S. attorneys general and the rules outlined are effective immediately.
“One of the most effective ways to combat corporate misconduct is by seeking accountability from the individuals who perpetuated the wrongdoing,” deputy attorney general Sally Q. Yates wrote in the memo. “Such accountability is important for several reasons: it deters future illegal activity, it incentivizes changes in corporate behavior, it ensures that the proper parties are held responsible for their actions, and it promotes the public’s confidence in our justice system.”