Two senators introduced legislation today to make settlements with federal enforcement agencies more transparent.
Sens. Tom Coburn (R-Okla.) and Elizabeth Warren (D-Mass.) said the Truth in Settlements Act will require greater public disclosure about agreements and it will create greater accountability concerning the actual value of deals made with federal agencies.
Federal agencies often tout the big-dollar amounts obtained from offenders. In some cases, though, tax deductions and other “credits” reduce the settlement’s true value, the senators said in a written summary of the legislation.
The U.S. Department of Justice has faced criticism for the $13 billion settlement with JPMorgan Chase & Co.—the largest settlement ever with a single private company—over the bank’s role in the financial crisis. JPMorgan intends to write off a large chunk of the deal, prompting complaints from Americans For Tax Fairness.


