Wall Street Cops to Ease Up on Firms That Self-Report Misconduct

Wall Street’s top federal prosecutors will show leniency towards banks and firms that self-report possible white-collar crimes early under a new nationwide policy.

Damian Williams, US Attorney for the Southern District of New York, and Breon Peace, US Attorney for the Eastern District of New York, on Wednesday announced the voluntary self-disclosure policy aimed at encouraging companies to turn themselves in.

Under the new policy, firms that come forward with misconduct before it becomes known to the public or prosecutors and then fully cooperate will receive “significant benefits” in any resulting deal. These could include not being required ...