What's happened
On June 10, 2025, Deputy Attorney General Todd Blanche announced the resumption of investigations under the Foreign Corrupt Practices Act, which had been paused by President Trump. This decision aims to align enforcement with national security priorities, despite criticism from watchdog groups regarding potential corporate abuses.
What's behind the headline?
Implications of Resuming Investigations
- Shift in Enforcement Focus: The resumption of investigations under the Foreign Corrupt Practices Act indicates a strategic pivot towards prioritizing cases that impact U.S. national security and competitiveness.
- Criticism from Advocacy Groups: Good government organizations have expressed alarm, arguing that this shift may undermine protections against corporate misconduct. Critics like Rick Claypool from Public Citizen warn that this could lead to a lack of accountability for American corporations involved in bribery abroad.
- Political Context: The decision reflects ongoing tensions between the Trump administration's policies and those of the Biden administration, particularly regarding corporate regulation and accountability.
- Future Outlook: As investigations resume, the effectiveness of these actions in deterring corporate crime will be closely monitored. The administration's approach may influence public trust in regulatory bodies and corporate governance moving forward.
What the papers say
According to the New York Times, Deputy Attorney General Todd Blanche's announcement marks a significant policy shift, stating that the department aims to align enforcement with national security priorities. However, critics argue that this could lead to a dangerous reduction in corporate accountability. Bloomberg highlights that the resumption of investigations comes after a period of significant scrutiny over the Trump administration's previous freeze on such actions, raising questions about the motivations behind this change. The AP News emphasizes the broader implications for corporate governance and public safety, particularly in light of recent events that have heightened concerns about corporate misconduct.
How we got here
The Trump administration previously halted investigations under the Foreign Corrupt Practices Act in February 2025, citing a need to review enforcement policies. This freeze coincided with the closure of significant investigations into major corporations, raising concerns about corporate accountability.
Go deeper
- What are the implications of this policy change?
- How will this affect corporate accountability?
- What criticisms have been raised regarding this decision?
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