Obama Administration Races to Finish Probes, Wring Payouts From Firms

U.S. reaches settlements worth around $20 billion in the past week alone with megabanks, auto makers, drug companies and others.

The Obama administration rushed to complete a raft of investigations of big business before relinquishing power, reaching settlements worth around $20 billion in the past week alone with megabanks, auto makers, drug companies and others.

The settlements—involving allegations of wrongdoing ranging from misdeeds during the financial crisis to emissions cheating, from discrimination in lending to squelching competition—are part of the usual scramble to close the books on lingering cases when a presidential administration winds down, especially when transferring control to the opposition party.

But the volume of big settlements occurring just before President Barack Obama’s eight years in power ends Friday is unusually high, observers said, reflecting both the events shaping his presidency—which started amid a market meltdown—and the Democrats’ attempt to strike a hard line against alleged corporate wrongs.

On Wednesday alone, the Obama administration announced a $5.3 billion accord with Credit Suisse Group AG, resolving claims that the Swiss bank misled mortgage-bond investors before the 2008 financial crisis; a $64.6 million deal with State Street Corp. to resolve criminal and civil charges that the company charged clients secret commissions; and a $100 million agreement with Irish drugmaker Mallinckrodt PLC to settle antitrust allegations that it unlawfully prevented competition for Acthar, a drug that has seen enormous price increases in recent years.

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