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Controversial Settlement Practices in Politics

1 month ago 0

Emily Bazelon and David French, both with law degrees and writing for the Opinion section, discuss recent political developments involving Jeff Sessions and the Trump administration.

Background on Jeff Sessions’ 2017 Memo

Sessions, as Trump’s first attorney general, issued a directive in 2017. The memo barred the Justice Department from settling lawsuits by allocating payments to third parties not directly affected by the legal issue. Sessions aimed to ensure settlements compensated only the actual victims.

This directive addressed criticisms of settlements negotiated by the Obama Justice Department. For instance, certain deals required banks involved in harmful lending practices during the 2008 financial crisis to donate to groups like the National Council of La Raza and NeighborWorks. These organizations provided legal aid and community development in affected areas. Republicans accused the D.O.J. of bypassing Congress to benefit favored groups.

Trump’s New Settlement Practices

The Trump administration recently announced a $1.776 billion fund. Unlike the previous administration’s actions, this fund seems to circumvent Congress to benefit Trump’s allies. This move arose from Trump’s dropping of a $10 billion lawsuit against the I.R.S. concerning leaked tax information.

As part of the settlement, Trump secured immunity from any tax investigations into himself, his family, or his businesses indefinitely, emphasizing the self-serving nature of the deal.

“Trump is creating a slush fund under his total control, to use how he wants, using payment procedures he defines.” – David French

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