This is an update to a post published on Insurance Claims and Issues Web Log on Thursday, August 19, 2010.
A third Federal Judge continued to question a proposed Federal Settlement of Criminal penalties with Barclays Bank, but approved it last week nonetheless. Reportedly, at a Hearing last week the Judge "expressed concerns that Barclays was not pleading guilty, that no individuals were being prosecuted, and that the $298 million [settlement amount] would be paid by shareholders, not corporate executives." He approved the deal anyway. See "Barclays Deal With U.S. Over Trade Sanctions is Approved" p. B9, col. 1 (New York Times Nat'l ed., Reuters Report, Thursday, August 19, 2010).
The Federal Judge asking those questions also reportedly stated that "it wasn't his job to micromanage how the Justice Department handles prosecutions." Brent Kendall and Michael Rothfeld, "Barclays Judge Says 'Yes, but ...'" p. C3, col. 1 (Wall Street Journal, Thursday, August 19, 2010), published online under the headline, "Green Light on Barclays Pact" (Subscription required to access Wall Street Journal online).
Good Faith should enter into the Government's settlement deals. Good Faith is certainly a required concept for Insurance Companies and other settling parties. If Good Faith does not enter into Settlements to which the Government is a party, then what does?
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