WASHINGTON, Jan 29 (Reuters) - Two U.S. senators on Tuesdayquestioned whether the Justice Department has been aggressiveenough in prosecuting misconduct at the largest banks and askedthe department to turn over information on how it determinespunishments.
Sherrod Brown, a Democrat who chairs a Senate Bankingsubcommittee, and Chuck Grassley, the top Republican on theSenate Judiciary Committee, said they are worried that certainWall Street banks enjoy "too big to fail" status in enforcementpolicy, resulting in disproportionately low penalties.
The requests come amid renewed interest in whether U.S.authorities have held accountable the institutions andindividuals who contributed to the 2007-2009 financial crisis.
In a letter to Attorney General Eric Holder, the senatorsasked whether the Justice Department ever failed to prosecuteany institutions due to concern about the stability of thefinancial markets or imposed a penalty that reflected suchconcerns.
They asked Holder to name outside experts that prosecutorsconsulted in making decisions about charging financialinstitutions with more than $1 billion in assets. Brown andGrassley also asked for copies of any contracts with suchexperts.
Justice Department officials have said they are required toconsider collateral consequences when deciding whether to chargea company.
"Our markets will only function efficiently if participantsbelieve that all laws will be enforced consistently, and thatviolators will be punished to the fullest extent of the law,"the two senators wrote. "There should not be one set of rulesthat apply to Wall Street and another set for the rest of us."
The Justice Department has entered into several majorsettlements related to financial misconduct in recent months.
London-based bank HSBC agreed in December to pay$1.9 billion to resolve charges that it failed to maintain aneffective anti-money laundering program. In exchange forimproving its compliance program, the department agreed to deferand eventually drop criminal charges.
Last month, Swiss bank UBS agreed to pay some $1.5billion and its Japan unit pleaded guilty to a criminal chargein connection with its role in manipulating benchmark interestrates.
"We have received the letter and are reviewing it," JusticeDepartment spokeswoman Rebekah Carmichael said.
HSBC Holdings (HSBA)