Justice Department halts settlements funding outside groupsNEW YORK/WASHINGTON (Reuters) - The U.S. Justice Department on Wednesday said it is barring legal settlements in federal investigations that include donating funds to community organizations or other third-party groups, rather than paying those directly harmed by the wrongdoing or involved in the cases. U.S. Attorney General Jeff Sessions said in a statement that settlement payments must be directed to victims impacted by the defendants’ actions and then to the federal government.  The change could impact banks and other corporations, and marks the latest action by the Republican Trump administration to end policies from the previous Democratic Obama administration. Such agreements were a feature of several U.S. settlements with banks following the 2008 financial crisis. Under former President Barack Obama, the Justice Department aimed to hold banks accountable for shoddy securities that contributed to the U.S. housing market collapse. From 2013 to 2016, the department reached $46 billion in settlements with U.S. banks that in part directed funds to approved housing aid and other related groups. In Obama’s final weeks in office, the department sued Barclays PLC (BARC.L) over similar claims. “In recent years the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement,” Sessions said a statement. “We are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm, and punish and deter unlawful conduct.” The change could impact banks still under federal investigation over mortgage issues such as Credit Suisse Group AG (CSGN.S), Royal Bank of Scotland Group PLC (RBS.L), Wells Fargo & Co (WFC.N), UBS Group AG (UBSG.S) and HSBC (HSBA.L). Representatives for the banks could not be immediately reached.     Sessions, in a one-page memo dated Monday, told the nation’s 94 U.S. attorneys they could not make any agreements in civil or criminal cases “that directs or provides for a payment or loan to any non-governmental person or entity that is not a party to the dispute.” Sessions’ new policy “is ill-advised and ignores the tens of thousands of families who were helped by housing service providers across the country in the wake of the financial crisis,” said Amy Spitalnick, a spokeswoman for New York Attorney General Eric Schneiderman. Schneiderman was co-chair of a working group that investigated misconduct in the pooling and sale of mortgage securities in the run-up to the financial crisis. Sessions cited three exceptions to the new policy: payments or loans that directly aim to address harm such as to the environment or official corruption; legal or other professional services from the case; and restitution, forfeiture and other payments required by law. While the policy affects future deals, it would have impacted cases like the Environmental Protection Agency’s diesel emissions settlement with Volkswagen AG (VOWG_p.DE) that required the German automaker to invest $2 billion in zero-emission vehicle efforts over 10 years. Eric Schaeffer, executive director of the Environmental Integrity Project and a former EPA civil enforcement director, said the new ban could prevent a similar settlement after the Justice Department sued Fiat Chrysler Automobiles NV (FCHA.MI) last month over excess diesel emissions. The memo could ensure “violators won’t be required to support development of low emission vehicles to compensate for illegal pollution from the dirty engines they designed,” he said. The change could still affect a proposed $12 million Justice Department settlement with Harley-Davidson Inc (HOG.N) that was announced in August but not finalized that includes $3 million to reduce air pollution through a project to replace conventional woodstoves.    politicsNews
justice department halts settlements funding outside groupsnew reuters the justice department wednesday said barring legal settlements federal investigations include donating funds community organizations groups rather paying directly harmed wrongdoing involved cases attorney general jeff sessions said statement settlement payments must directed victims impacted defendants actions federal government the change could impact banks corporations marks latest action republican trump administration end policies previous democratic obama administration such agreements feature several settlements banks following financial crisis under former president barack obama justice department aimed hold banks accountable shady securities contributed housing market collapse from department reached billion settlements banks part directed funds approved housing aid related groups in obama final weeks office department sued barclays plc similar claims in recent years department justice sometimes required encouraged defendants make payments third parties condition settlement sessions said statement we ending practice ensuring settlement funds used compensate victims redress harm punish deter unlawful the change could impact banks still federal investigation mortgage issues credit suisse group ag royal bank scotland group plc wells cargo co us group ag hsbc representatives banks could immediately reached sessions memo dated monday told nation attorneys could make agreements civil criminal cases directs provides payment loan person entity party sessions new policy ignores tens thousands families helped housing service providers across country wake financial crisis said amy spitalnick spokeswoman new york attorney general eric schneiderman schneiderman working group investigated misconduct cooling sale mortgage securities financial crisis sessions cited three exceptions new policy payments loans directly aim address harm environment official corruption legal professional services case restitution forfeiture payments required law while policy affects future deals would impacted cases like environmental protection agency diesel emissions settlement volkswagen ag required german automated invest billion vehicle efforts years eric schaeffer executive director environmental integrity project former epa civil enforcement director said new ban could prevent similar settlement justice department sued fiat chrysler automobiles nv last month excess diesel emissions the memo could ensure violations required support development low emission vehicles compensate illegal pollution dirty engines designed said the change could still affect proposed million justice department settlement inc announced august finalized includes million reduce air pollution project replace conventional woodstoves politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Justice Department halts settlements funding outside groupsNEW YORK/WASHINGTON (Reuters) - The U.S. Justice Department on Wednesday said it is barring legal settlements in federal investigations that include donating funds to community organizations or other third-party groups, rather than paying those directly harmed by the wrongdoing or involved in the cases. U.S. Attorney General Jeff Sessions said in a statement that settlement payments must be directed to victims impacted by the defendants’ actions and then to the federal government.  The change could impact banks and other corporations, and marks the latest action by the Republican Trump administration to end policies from the previous Democratic Obama administration. Such agreements were a feature of several U.S. settlements with banks following the 2008 financial crisis. Under former President Barack Obama, the Justice Department aimed to hold banks accountable for shoddy securities that contributed to the U.S. housing market collapse. From 2013 to 2016, the department reached $46 billion in settlements with U.S. banks that in part directed funds to approved housing aid and other related groups. In Obama’s final weeks in office, the department sued Barclays PLC (BARC.L) over similar claims. “In recent years the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement,” Sessions said a statement. “We are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm, and punish and deter unlawful conduct.” The change could impact banks still under federal investigation over mortgage issues such as Credit Suisse Group AG (CSGN.S), Royal Bank of Scotland Group PLC (RBS.L), Wells Fargo & Co (WFC.N), UBS Group AG (UBSG.S) and HSBC (HSBA.L). Representatives for the banks could not be immediately reached.     Sessions, in a one-page memo dated Monday, told the nation’s 94 U.S. attorneys they could not make any agreements in civil or criminal cases “that directs or provides for a payment or loan to any non-governmental person or entity that is not a party to the dispute.” Sessions’ new policy “is ill-advised and ignores the tens of thousands of families who were helped by housing service providers across the country in the wake of the financial crisis,” said Amy Spitalnick, a spokeswoman for New York Attorney General Eric Schneiderman. Schneiderman was co-chair of a working group that investigated misconduct in the pooling and sale of mortgage securities in the run-up to the financial crisis. Sessions cited three exceptions to the new policy: payments or loans that directly aim to address harm such as to the environment or official corruption; legal or other professional services from the case; and restitution, forfeiture and other payments required by law. While the policy affects future deals, it would have impacted cases like the Environmental Protection Agency’s diesel emissions settlement with Volkswagen AG (VOWG_p.DE) that required the German automaker to invest $2 billion in zero-emission vehicle efforts over 10 years. Eric Schaeffer, executive director of the Environmental Integrity Project and a former EPA civil enforcement director, said the new ban could prevent a similar settlement after the Justice Department sued Fiat Chrysler Automobiles NV (FCHA.MI) last month over excess diesel emissions. The memo could ensure “violators won’t be required to support development of low emission vehicles to compensate for illegal pollution from the dirty engines they designed,” he said. The change could still affect a proposed $12 million Justice Department settlement with Harley-Davidson Inc (HOG.N) that was announced in August but not finalized that includes $3 million to reduce air pollution through a project to replace conventional woodstoves.    politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: justice department halts settlements funding outside groupsnew reuters the justice department wednesday said barring legal settlements federal investigations include donating funds community organizations groups rather paying directly harmed wrongdoing involved cases attorney general jeff sessions said statement settlement payments must directed victims impacted defendants actions federal government the change could impact banks corporations marks latest action republican trump administration end policies previous democratic obama administration such agreements feature several settlements banks following financial crisis under former president barack obama justice department aimed hold banks accountable shady securities contributed housing market collapse from department reached billion settlements banks part directed funds approved housing aid related groups in obama final weeks office department sued barclays plc similar claims in recent years department justice sometimes required encouraged defendants make payments third parties condition settlement sessions said statement we ending practice ensuring settlement funds used compensate victims redress harm punish deter unlawful the change could impact banks still federal investigation mortgage issues credit suisse group ag royal bank scotland group plc wells cargo co us group ag hsbc representatives banks could immediately reached sessions memo dated monday told nation attorneys could make agreements civil criminal cases directs provides payment loan person entity party sessions new policy ignores tens thousands families helped housing service providers across country wake financial crisis said amy spitalnick spokeswoman new york attorney general eric schneiderman schneiderman working group investigated misconduct cooling sale mortgage securities financial crisis sessions cited three exceptions new policy payments loans directly aim address harm environment official corruption legal professional services case restitution forfeiture payments required law while policy affects future deals would impacted cases like environmental protection agency diesel emissions settlement volkswagen ag required german automated invest billion vehicle efforts years eric schaeffer executive director environmental integrity project former epa civil enforcement director said new ban could prevent similar settlement justice department sued fiat chrysler automobiles nv last month excess diesel emissions the memo could ensure violations required support development low emission vehicles compensate illegal pollution dirty engines designed said the change could still affect proposed million justice department settlement inc announced august finalized includes million reduce air pollution project replace conventional woodstoves politicsnews