President Barack Obama slammed the city of Ferguson, Missouri, on Friday for fostering what he called an “oppressive and abusive” environment for African-Americans, setting the stage for possibly dismantling the police department.

A U.S. Justice Department report accused both police and court officials of acting with racial bias, according to a Reuters report. The city has become infamous after a police officer gunned down an unarmed black man named Michael Brown last year, causing widespread protests that eventually stretched nationwide.

U.S. Attorney General Eric Holder said on Friday that it was open to the possibility of dismantling the city’s police department in light of the report. He said that the administration was “prepared to use all the power that we have,” which could mean requiring that they come up with an “entirely new structure,” according to the report.

Ferguson Mayor James Knowles said three of the city workers had been fired by the city for exhibiting racial bias, and that city officials were working with the Justice Department to try to reach a settlement.

Ferguson police officers Rick Henke and William Mudd resigned on Thursday, and the city fired top court clerk Mary Ann Twitty.

The Justice Department in its report found that the police force, which is overwhelmingly white, often targeted African-Americans for arrests and tickets, and that there was a pattern of excessive force by police. The Justice Department alleged that the city’s police force often used attack dogs and tasers when it wasn’t necessary.

The administration further alleged that the Ferguson Police Department used arrests and tickets as a revenue generator for the city instead of as a way to stamp out crime, and that it was systematically biased against black residents.

Ferguson police officer Darren Wilson killed an unarmed black teenager on Aug. 9, officials say, which sparked nationwide protests and a discussion on the treatment of blacks in America by police.

The Justice Department was unable to find grounds for prosecuting Officer Wilson in the killing, but it did lead to the findings of widespread racial bias in the police department.

Obama said Friday that he had “complete confidence” in the Justice Department’s decision not to charge Wilson.