Since 2002 Non-Prosecution and Deferred Prosecution Agreements (NPA, DPA) have helped prosecutors and the US Department of Justice (DoJ) to have companies admit wrongdoing without pleading guilty. Such agreements have been used in numerous bank settlements and have often included promises to not commit future wrongdoing during a specific period as well as sometimes installing an independent monitor within the financial institution.
As the DoJ decided to scrap the UBS’s NPA in the LIBOR settlement, it will probably change the way negotiations will take place between the prosecution and the corporate attorneys for Category 2 banks.
Some US lawmakers, such as senator Elizabeth Warren, have called on the DoJ to stop issuing NPAs or DPAs. Moreover, Leslie Caldwell, assistant attorney-general, has said she would not hesitate to rip up such agreements if warranted.