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Partner Neil M. Barofsky has been appointed monitor by the US Department of Justice (DOJ) to oversee the ongoing compliance by Credit Suisse Securities (USA) LLC with the terms of its $5.3 billion settlement with the DOJ over the sales of residential mortgage-backed securities in the run-up to the 2008 financial crisis. As monitor, Mr. Barofsky will oversee the bank’s remediation efforts as called for by the DOJ settlement.
Since 2014, Mr. Barofsky has been serving as monitor to Credit Suisse, following the bank’s 2014 US$715 million settlement with the New York Department of Financial Services, part of a broader US$2.6 billion settlement that involved the DOJ and federal regulators. Along with Partner Anthony S. Barkow, he has led a team of lawyers across the firm in key aspects of that appointment.
An accomplished trial lawyer and well-known authority on issues at the intersection of economics, law, business and politics, Mr. Barofsky was the first Special Inspector General for the Troubled Asset Relief Program (TARP). As chief watchdog, he oversaw the creation and expansion of a law enforcement agency within the US Treasury Department charged by Congress to conduct criminal and civil investigations of fraud and abuse linked to the bailouts. Under his leadership, the office’s investigations led to the recovery or avoided losses of more than $700 million in taxpayer money and to more than 200 individuals being charged with TARP-related crimes to date.
Jenner & Block’s White Collar and Investigations Practice has handled some of the most sensitive and highest-profile investigations of record, many of which draw international headlines and involve multiple jurisdictions and US government actors, including Capitol Hill, the DOJ and the Securities Exchange Commission. These investigations cover the spectrum of industries and include topics from FCPA to health care fraud to financial matters to public corruption.
In addition to the Credit Suisse monitorships, Jenner & Block lawyers have been appointed monitor or settlement administrator in several other significant matters over the past two years, including: 1) a $2.5 billion settlement agreement between the DOJ and Citigroup over the sale of mortgage securities; 2) a compliance settlement between Ashford University and its parent company Bridgepoint Education, and the Iowa Attorney General, related to recruitment and enrollment practices; and 3) a multistate agreement reached between 39 states and the District of Columbia and for-profit education company Education Management Corporation (EDMC) to oversee EDMC’s compliance with the settlement’s disclosure and recruiting requirements.