By Kitty Calavita
At a value of $500 billion to American taxpayers, the discounts and personal loan debacle of the Nineteen Eighties used to be the worst monetary drawback of the 20 th century in addition to against the law unprecedented in American background. but the majority of its perpetrators shouldn't be prosecuted, and people who have been have obtained minimum sentences. within the first in-depth scrutiny of the methods and technique of this catastrophe, this groundbreaking booklet involves tense conclusions concerning the planned nature of this monetary fraud, the political collusion concerned, and the leniency of the felony justice process in facing those "Gucci-clad white-collar criminals."Using fabric from over 100 interviews with executive officers and leaders and lately declassified files, the authors exhibit how--contrary to prior executive and "expert" reasons that chalked the catastrophe as much as enterprise dangers long gone awry or hostile financial conditions--S&L leaders engaged in planned fraud, stealing from their very own agencies to invest on high-risk ventures. Tempted by means of the assurance internet, perpetrators looted their very own associations in a brand new type of white-collar crime the authors dub "collective embezzlement."Big cash Crime additionally demonstrates how systematic political collusion--not simply coverage errors--was a serious factor during this extraordinary sequence of frauds. Bringing jointly data from quite a few govt enterprises, the authors offer a detailed interpreting of the tune list of prosecutions and sentencing and locate that "suite crime" gets even more lenient therapy than "street crime," regardless of its considerably larger price ticket. The ebook concludes with a couple of modest, yet no much less pressing, coverage suggestions to counter the present deregulatory pattern and to avoid a replay of the S&L debacle in different monetary sectors.FROM THE BOOK:"We outfitted thick partitions; we have now cameras; we now have time clocks at the vaults . . . a lot of these controls have been to guard opposed to a person stealing the money. good, you could thieve way more cash, and take it out the again door. how you can rob a financial institution is to possess one."--House Committee on govt Operations, 1988
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Extra info for Big Money Crime: Fraud and Politics in the Savings and Loan Crisis
Even though the data we requested were readily available in computerized form and Page 8 could be easily downloaded onto floppy disks, this official refused to provide the disks. Instead, his staff gave us hard copy printouts for individual cases. We were then forced to laboriously re-create the original computerized format. At first we believed that the official's reluctance to give us the disks stemmed from simple ignorance; indeed, he and his staff seemed to believe that there might be some confidential information "hidden" somewhere on the disks.
Based on the current market value of its assets rather than on their reported book value). 5 percent interest on new deposits, the industry could not attract new money. When Paul Volcker, head of the Federal Reserve Board, tightened the money supply in 1979 in an effort to bring down inflation, interest rates soared to their highest level in the century and triggered a recession. Faced with defaults and foreclosures as a result of the recession and with increased competition from high-yield investments, given the hikes in the interest rate, S&Ls hemorrhaged losses.
Institutions under RTC Supervision in California and Texas 38 3. Insiders/Outsiders Cited in Referrals 48 4. Crime Types and Losses 70 5. Criminal Networking and Impact on "Financial Soundness" 72 6. Individuals Criminally Referred and Indicted in Texas and California 148 7. Selected Characteristics of Suspects and Offenses in Texas and California 152 8. Major S&L Cases 157 9. Prison Sentences in Major S&L Cases 158 10. Status of Defendants in Major S&L Cases 159 11. Sentences in Relation to Defendant's Position and Offense in Major S&L Cases 161 12.