Sen. Warren introduces bipartisan bill to increase transparency in reporting federal settlements
N — With the aim of increasing the transparency around settlements reached with companies found to be in violation of federal laws, U.S. Sen. Elizabeth Warren, D-Mass., has teamed up with U.S. Sen. Tom Coburn, an Oklahoma Republican, to push a new bill.
The Truth in Settlements Act, as introduced by the bipartisan duo on Wednesday, comes amid steady concern in Washington that companies which settle with the government amid investigations into wrongdoing often cut deals to avoid more significant penalties. The legislation would require the federal agencies they settle with to make public all the details of a settlement, not just the dollar figure of estimated value often touted in press releases announcing such settlements.
"When government agencies reach settlements with companies that break the law, they should disclose the terms of those deals to the public," Warren said. "Anytime an agency decides that an enforcement action is needed, but it is not willing to go to court, that agency should be willing to disclose the key terms and conditions of the agreement. Increased transparency will shut down backroom deal-making and ensure that Congress, citizens and watchdog groups can hold regulatory agencies accountable for strong and effective enforcement that benefits the public interest."
Since entering the Senate and taking her place on the Senate Banking committee, Warren has criticized the Securities and Exchange Commission for settling with large financial institutions rather than taking them to court, despite their purported level of malfeasance.
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http://www.masslive.com/politics/index.ssf/2014/01/sen_elizabeth_warren_introduce_1.html
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