The DOJ report described a "toxic" environment in Ferguson with regard to its police.
"We are prepared to use all the power that we have… to ensure that the situation changes there," Holder said Friday. "That means everything from working with them to coming up with an entirely new structure."
When asked by a reporter whether that includes the breaking up of the department, Holder said, "If that's what's necessary, we're prepared to do that."
On Thursday, one officer was fired and an additional two were put on leave after the DOJ report revealed racist emails that had circulated in the department.
Two additional officers resigned in connection with that scandal on Friday.