Shameless Self-Promotion Sunday
11 hours ago
In the longer term, human-induced climate change is expected to increase the frequency and severity of weather-related hazards, including floods, storms, wildfires and droughts which contribute to most disaster-induced displacementAs Hurricane Sandy showed, climate refugees aren't limited to the developing world. Over three-quarters of a million people in the U.S. were displaced in 2012 by "the costliest storm disaster" in the nation's history, the report states.
There is no question that settlements, fines, consent orders, and cease and desist orders are important enforcement tools, and that trials are expensive…But I believe strongly that if a regulator reveals itself to be unwilling to take large financial institutions all the way to trial…the regulator has a lot less leverage in settlement negotiations and will be forced to settle on terms that are much more favorable to the wrongdoer…If large financial institutions can break the law and accumulate million in profits, and if they get caught, settle by paying out of those profits, they do not have much incentive to follow the law.Warren's letter follows a similar request she made to another banking regulator, the Office of the Comptroller of the Currency, at a February Senate Banking Committee hearing. When agency officials couldn't answer Warren's question about the last time they took a financial institution to trial—some said it was unnecessary—she asked them to pony up any research it had on the trade-offs of settling versus going to trial. Last week, the OCC responded that it had no such research. So Warren decided to take the question to some of the other Wall Street regulators.