Bob Goodlatte

In past settlements with big banks, millions of dollars were sent to nonprofits. The Justice Department plans to end that.

In past settlements with big banks, millions of dollars were sent to nonprofits. The Justice Department plans to end that.

The Justice Department will no longer set aside money from fraud settlements with corporate wrongdoers to give to community groups and nonprofits, Atty. Gen. Jeff Sessions said Wednesday, a victory for conservative groups that opposed the Robin Hood-like grants.

Under the Obama administration, some of the billions of dollars that big banks paid in penalties after the 2008 financial crisis were doled out to help legal aid and housing organizations that were working to stave off foreclosures in hard-hit communities.

But the practice was harshly criticized by some Republicans and conservative legal scholars who said the Justice Department was essentially handing out money to...

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