The issue focused on banks with loans underwritten by firms such as Deutsche Bank or HSBC. It comes after regulators ordered lenders to demonstrate how much these loans made them profitable and showed they didn't violate securities laws.

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Ms. Lackey said she believed there were reasonable grounds for imposing penalties if some people refused to repay their debts. She pointed out that Ms. Sanchez would still face prosecution if she refuses to pay back $36-million in unpaid principal