NCJ Number
120205
Journal
Notre Dame Law Review Volume: 64 Issue: 2 Dated: (1989) Pages: 222-245
Date Published
1989
Length
24 pages
Annotation
Increased numbers of financial institution failures have spotlighted the role of insider misconduct in the banking industry and emphasized the need for better detection, investigation and prosecution of such fraud.
Abstract
No one factor is paramount in bank failures according to recent studies by the Office of the Comptroller of the Currency (OCC) and the Government Accounting Office (GAO), but insider fraud is a significant factor. State and Federal regulatory agencies have the power to pursue civil enforcement actions against financial institutions and individuals; Criminal conduct charges must be referred to the Department of Justice. Problems associated with civil and criminal prosecution are detailed, and it is shown that the banking agencies have not consistently or vigorously applied the available sanctions. Congressional interest in 1984 causing the formation of the Interagency Bank Fraud Working Group is cited as improving communication among enforcement agencies at the Federal level, and paving the way for local banking agency and law enforcement offices to increase coordination of their efforts. 140 notes.