Did We Just Find Someone to Take On the Banks?

Aug. 10 (Bloomberg) -- To see how the federal governmenthas pursued money-laundering cases against big banks over theirdealings with Iran and other countries under U.S. tradesanctions, consider what happened when Barclays Plc and theJustice Department were required to file reports describing theU.K. bank’s cooperation under a settlement in 2010.

The deadline came and went. Barclays and the JusticeDepartment failed to comply, infuriating U.S. District JudgeEmmet Sullivan of Washington, who had ordered that the reportsbe filed. “I am amazed that with all the legal talent beforethe court that no one opened the order to read it,” he said. AJustice Department attorney, Kevin Gerrity, told the judge hecouldn’t explain the lapse. Before approving Barclays’sdeferred-prosecution agreement, Sullivan called it a“sweetheart deal.” Barclays paid $298 million, its corebusiness was unscathed, and no executives were charged.