Will the DOJ Pursue Big Banks After Holder Departs?

Do you hear that? That's the sound of big banks breathing a sigh of relief.

Attorney General Eric Holder is stepping down. And according to Wall Street Journal writer Deborah Solomon, his departure signals the end of the Justice Department's crusade to hold financial institutions culpable for their conduct prior to the financial crisis.

Solomon writes:

While several big banks remain in the Justice Department's crosshairs for their sale of flawed mortgage securities ahead of the 2008 financial crisis, the settlements are expected to be much smaller than the record sums extracted from Bank of America (BAC), J.P. Morgan Chase & Co. (JPM) and Citigroup Inc. (C), according to people familiar with the matter.

Those still under investigation by Justice include Goldman Sachs Group Inc. (GS) and Wells Fargo & Co. (WFC). But those cases are not expected to produce the headline-catching sums like Bank of America's $16.65 billion tab, given they involve a smaller volume of mortgage securities than the other banks.

Among the signs that the big bank cases may be winding down: Tony West, who was Mr. Holder's point-man in the big bank settlement talks, recently left the Justice Department and will join PepsiCo (PEP) as its general counsel.