By Andrew Grossman
WASHINGTON--Attorney General Eric Holder wants Justice
Department lawyers to decide within three months whether they can
win cases against any individuals for actions ahead of the
financial crisis.
Mr. Holder said Tuesday he has asked U.S. attorneys involved in
reaching mortgage-related civil settlements with big banks to weigh
whether "they think they're going to be able to successfully bring
criminal or civil cases against" individuals and report back within
90 days.
The deadline comes as Mr. Holder prepares to step down as
attorney general amid continuing criticism from lawmakers and
others for failing to bring charges against any top executives at
financial firms for conduct that helped fuel the 2008 meltdown.
The Justice Department has reached a series of
multibillion-dollar settlements with big banks for misleading
investors about the quality of residential mortgage-backed bonds,
including Citigroup Inc., J.P. Morgan Chase & Co. and Bank of
America Corp. Additional probes into banks including Goldman Sachs
Group Inc. and Morgan Stanley are continuing, The Wall Street
Journal has previously reported.
While the Justice Department could still decide to bring charges
down the road, the 90-day deadline is intended to help the
department determine whether any cases look promising and which
ones to prioritize. Department officials have long maintained that
they would bring cases against individuals if they thought they had
the evidence it would take to win a conviction. Internally, the
department has weighed criminal charges against a number of bank
employees, but has yet to file any.
Mr. Holder's remarks at the National Press Club on Tuesday show
he is still pushing Justice Department prosecutors and civil
litigators to pursue potential cases against individuals, even
those working at firms that have already settled with the
government, more than six years after the financial crisis.
"To the extent that individuals have not been prosecuted, people
should understand: it is not for lack of trying," Mr. Holder said.
"These are the kinds of cases that people come to the Justice
Department to make."
If anything comes of the review ordered by Mr. Holder, it will
likely be up to his successor to decide how to handle it. Mr.
Holder is expected to step down once President Barack Obama's
nominee to succeed him, Brooklyn U.S. Attorney Loretta Lynch, is
confirmed. The Senate is expected to vote on her nomination in the
coming weeks.
Write to Andrew Grossman at andrew.grossman@wsj.com
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