The Best Way to Rob a Bank Is to Own One: How Corporate Executives and Politicians Looted the S&L Industry

The Best Way to Rob a Bank Is to Own One: How Corporate Executives and Politicians Looted the S&L Industry

The Best Way to Rob a Bank Is to Own One: How Corporate Executives and Politicians Looted the S&L Industry

The Best Way to Rob a Bank Is to Own One: How Corporate Executives and Politicians Looted the S&L Industry

Excerpt

In 2003, the United States Department of Justice reported that property crimes had continued their trend and fallen to an all-time low. In fact, property crimes have surged to an all-time high since Enron collapsed in late 2001. The reason for the contradiction is that the Justice Department does not count serious property crimes because it excludes whitecollar crimes from its data keeping. A wave of frauds led by the men who control large corporations, what I term “control fraud,” caused the massive losses from property crimes.

In the 1980s, a wave of control frauds ravaged the savings and loan (S&L) industry. I was a regulator during the heart of that crisis. As the book shows, I had an uncanny ability to end up in the wrong place at the wrong time and a talent for getting powerful politicians furious at me. After the crisis, I went back to school at the University of California at Irvine to learn to be a criminologist. I knew that the S&L crisis had grown out of systemic fraud. My dissertation studied California S&L control frauds.

This book arose from my concerns that we had failed to learn the lessons of the S&L debacle and that the failure meant that we walked blind into the ongoing wave of control frauds. The defrauders use companies as both sword and shield. They have shown themselves capable of fooling the most sophisticated market participants and academic experts. They are financial superpredators who use accounting fraud as a weapon and a shield against prosecution.

Several factors make control frauds uniquely dangerous. The person who controls a company (or country) can defeat all internal and external . . .

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.