On March 31, Preet Bharara, the U.S. Attorney for the Southern District of New York, emphasized the important deterrent effect of criminal prosecutions against corporate entities and predicted that “before too long a significant financial institution will be charged with a felony or made to plead guilty to a felony.”  Speaking at SIFMA’s Compliance and Legal Society Annual Seminar, Bharara noted that to effectively deter criminal conduct, both individuals and entities must be held accountable.  Effective deterrence, he said, sometimes requires punishment of entities, not just individuals.  Bharara added that he believed the “pendulum had swung too far” away from corporate prosecutions in the wake of Arthur Andersen’s collapse.  Bharara also predicted greater cooperation between prosecutors and regulators, noting that prosecutors sometimes were reluctant to bring criminal charges against a financial institution if doing so risked a regulator revoking a state banking charter or license effectively putting the company out of business. DOJ Press Release