Appalled : Eric Holder said he was shocked by Ferguson Police department , and prepared to tear it apart and start over . U.S. Attorney General Eric . Holder has threatened to dismantle Ferguson 's police department to force through reforms after a damning report found widespread racism in the force . Holder told reporters that the Justice Department is 'prepared to use all the power that we have ' to push through change in the beleaguered Missouri force , which was castigated nationwide over the killing of Michael Brown . The threat follows the publication of a report which showed officers swapping racist emails , as well as finding that 93 per cent of all arrests in the town , and most uses of excessive force were directed at the African American population . President Barack Obama has called the policing in Ferguson 'broken and racially biased ' which requires a 'fix ' from the federal government . Holder , speaking today in Maryland in front of Air Force One , told reporters that Justice Department plans include 'everything from working with them to coming up with an entirely new structure ' . When asked if that meant dismantling the force and starting over , he said : 'If that 's what 's necessary , we 're prepared to do that . ' He seized in particular on parts of the report showing that Ferguson police overwhelmingly issued fines for offenses like traffic violations and speeding to African Americans - seemingly in an attempt to bolster the city 's revenues . Scroll down for video . Racist practices : A Justice Department report found that the police department overwhelming arrested , fined and used force on the Missouri town 's African American population . Putting up with it : An officer stands watch as demonstrators rally outside the police department 's headquarters earlier this week after the report was published . Holder said : 'The notion that you would use a law enforcement agency or law enforcement generally to generate revenue , and then the callous way in which that was done and the impact that it had on the lives of the ordinary citizens of that municipality , was just appalling . Appalling . 'And that is not something that we 're going to tolerate . ' However , Ferguson 's mayor countered Holder 's threats with a warning that some measures would be an 'overreach ' of executive power , and insisting that the city would not comply unless there was 'mutual satisfaction ' . Civil rights lawyers have previously said the county could . absorb the functions of the Ferguson Police Department . National outcry : Ferguson became the center of a debate over policing and racism last summer after Darren Wilson , left , shot dead teenager Michael Brown . Shot dead : Ferguson officer Darren Wilson is pictured above standing over the corpse of Michael Brown after the controversial shooting , over which he was ultimately not charged . The Justice Department issued a report this week that found . that police in Ferguson created a 'toxic ' environment with its policing practices . That culture of distrust erupted in August , when white . Ferguson Officer Darren Wilson fatally shot 18-year-old Michael . Brown , who was black and unarmed . The incident triggered months . of protest and a national debate about race and police behavior . Holder also said President Barack Obama 's task force on . policing will issue guidelines to address jailing citizens who . owe money to the city , a practice used in Ferguson . But he noted . that the federal government does not have the authority to . demand such a change of local governments . Unrest : Protesters like those above brought anarchy to the streets of Ferguson after a grand jury decided to take no action against Wilson . Ferguson city officials will meet with the Justice . Department in about two weeks to begin negotiating an agreement . on reforms , Ferguson Mayor James Knowles said . If the two parties can not reach a consensus , the Justice . Department can sue and force reform . Knowles said on Friday that the city would not settle with . the Justice Department if the negotiations do not lead to 'mutual satisfaction ' . 'There are a lot of things in that report that are very . troubling and need to be addressed , but there are also things . that are an overreach , ' Knowles said .
Eric Holder said Justice Department would do what is 'necessary ' Said radical steps could be taken to fix the Missouri force . Follows report which showed that almost all uses of excessive force - and 93 per cent of arrests - were aimed at African American . Follows national criticism of Ferguson after shooting of Michael Brown .