For all the complaints about the politicization of the Bush Department of Justice, what the Obama Department of Justice is doing is simply unprecedented. Take the case of the City of St. Paul. St. Paul was ready to challenge the DOJ's thoroughly bogus disparate-impact theory of fair lending in the Supreme Court, where it was surely doomed. DOJ pulled out all the stops, engaging in a quid pro quo of agreeing to drop an unrelated False Claims Act case against the city worth perhaps as much as $186 million—over the recommendation of career prosecutors—if the City would drop its Supreme Court case. [Congressional letter; American Banker; WSJ]
Things that should be bigger scandals department
- Richard Epstein: The Improbable Fate of the Durbin Amendment
- Suing for Settling
- CFPB and Disparate Impact
- Banking on Wind
- SAC Capital's Offense
- Stockpiling Penalties
- CEI, Cato, and PLF weigh in on Mount Holly
- Recklessly Jailing Bankers
- Pigford makes it into the New York Times
- New blog: Executive Branch Review
- "Worst FDNY class in the department's history"
- Are big-bank prosecutions following in the troubled footsteps of FCPA enforcement?
- Where are the lawsuits on behalf of Asian-Americans?
- Zywicki on Skeel on Dodd-Frank
- Hans Bader on disparate impact liability