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DOJ Stops Funding for Nonprofits In Regulatory Settlements

DOJ Stops Funding for Nonprofits In Regulatory Settlements

DOJ Stops Funding for Nonprofits In Regulatory Settlements

Sessions reverses former policy of providing money to nonprofits working to remediate problems at core of dispute
Attorney General Jeff Sessions has reversed an Obama-era policy of having corporate defendants fund nonprofit organizations as a part of settlements of claims for civil or criminal liability. In a policy memorandum issued June 5, the Attorney General said the practice will stop immediately. In recent years, a settlement with JPMorgan Chase provided $7.5 million to the American Bankruptcy Institute to fund programs on financial literacy, and several banks settling claims relating to sales of mortgage backed securities paid about $3 billion to multiple housing counseling groups like NeighborWorks, National Council of LaRaza, Habitat for Humanity, the National Urban League and state legal aid...

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