Breaking from profile, Darrell Issa, chairman of the House Oversight and Government Reform Committee, has decided to investigate the “litigation policy” of the Obama Department of Justice “with respect to large financial institutions accused of illegality and fraud.”
In a letter written to Attorney General Eric Holder on July 24, Issa requested “documents and communications” since January 1, 2011, referring or relating to settlement agreements with Citigroup, announced on July 14, 2014, and JPMorgan, announced on November 19, 2013, to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale, and issuance of residential mortgage-backed securities prior to January 1, 2009.
The letter states, “Both settlements were predicated on violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. While FIRREA authorizes the Department to initiate a lawsuit for civil money penalties, both Citigroup and JPMorgan resolved the investigations through pre-suit settlement negotiations.”
The letter points out that these sweet-heart deals with Citigroup and JPMorgan stand in stark contrast to the way that the DOJ treated Credit Suisse and BNP Paribas SA.
If Issa follows through on this investigation, he is likely to receive bipartisan support.
Lyndon LaRouche commented that there are clearly those who have decided not to play the Wall Street game.