DC - PRN - GHN News - "When a task force is created, it will find that
crimes were committed, it's just a question of how soon," declares
federal regulators in the launch of investigation of bank failures and
fraud.
With this statement Ed Tomko, former federal bank fraud prosecutor, and current chair of Curran Tomko Tarski's
white collar crime practice group, has put banks on notice that there
are going to be civil and criminal actions filed against bank executives
if criminal activity is found.
The
FDIC announced a new initiative on November 17 to investigate
executives, employees and officers of 50 failed banks. The agency has
put bank executives on notice that they are increasing efforts to punish
fraud and other criminal behavior in the same way federal regulators
did in the aftermath of the savings and loan crisis several decades ago.
FDIC announced a new initiative on November 17 to investigate
executives, employees and officers of 50 failed banks. The agency has
put bank executives on notice that they are increasing efforts to punish
fraud and other criminal behavior in the same way federal regulators
did in the aftermath of the savings and loan crisis several decades ago.
Investigators
tell us that since 2008, more than 300 financial institutions have
failed, but only a few of those failures have led to criminal charges so
far.
Tomko
says there are tremendous risks for bank decision makers and that there
is usually little or no controversy in bank fraud cases about these
acts and who did them. The problem is the determination of criminal
intent. On the other hand, if that criminal intent is proven, lengthy
prison sentences may ensue.
says there are tremendous risks for bank decision makers and that there
is usually little or no controversy in bank fraud cases about these
acts and who did them. The problem is the determination of criminal
intent. On the other hand, if that criminal intent is proven, lengthy
prison sentences may ensue.
Texas
is one of the states that the FDIC is focused on because it is central
to activity for financial institutions and banks of all sizes. This
effort by the FDIC targets all failed or failing institutions so this
new action on the part of the agency will likely include those troubled
banks in Texas. But they are in other states as well, as the fight to indict those who helped bring economic collapse gears up in earnest.
is one of the states that the FDIC is focused on because it is central
to activity for financial institutions and banks of all sizes. This
effort by the FDIC targets all failed or failing institutions so this
new action on the part of the agency will likely include those troubled
banks in Texas. But they are in other states as well, as the fight to indict those who helped bring economic collapse gears up in earnest.
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