By Kitty Calavita
At a value of $500 billion to American taxpayers, the discount rates and mortgage debacle of the Nineteen Eighties used to be the worst monetary concern of the 20 th century in addition to against the law remarkable in American heritage. but the majority of its perpetrators shouldn't be prosecuted, and those that have been have bought minimum sentences. within the first in-depth scrutiny of the methods and technique of this catastrophe, this groundbreaking e-book involves demanding conclusions concerning the planned nature of this monetary fraud, the political collusion concerned, and the leniency of the legal justice procedure in facing those "Gucci-clad white-collar criminals."Using fabric from over 100 interviews with executive officers and leaders and lately declassified records, the authors convey how--contrary to earlier govt and "expert" reasons that chalked the catastrophe as much as enterprise dangers long gone awry or adversarial monetary conditions--S&L leaders engaged in planned fraud, stealing from their very own agencies to take a position on high-risk ventures. Tempted by way of the assurance internet, perpetrators looted their very own associations in a brand new form of white-collar crime the authors dub "collective embezzlement."Big funds Crime additionally demonstrates how systematic political collusion--not simply coverage errors--was a severe component during this remarkable sequence of frauds. Bringing jointly data from various executive companies, the authors offer an in depth analyzing of the music checklist of prosecutions and sentencing and locate that "suite crime" gets even more lenient therapy than "street crime," regardless of its considerably greater price ticket. The publication concludes with a couple of modest, yet no much less pressing, coverage options to counter the present deregulatory development and to evade a replay of the S&L debacle in different monetary sectors.FROM THE BOOK:"We equipped thick partitions; we've got cameras; we now have time clocks at the vaults . . . these kinds of controls have been to guard opposed to an individual stealing the money. good, you could scouse borrow way more cash, and take it out the again door. tips on how to rob a financial institution is to possess one."--House Committee on govt Operations, 1988
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Extra resources for Big Money Crime: Fraud and Politics in the Savings and Loan Crisis
Pontell, Robert H. Tillman. p. cm. ) and index. paper) 1. Savings and loan associationsCorrupt practicesUnited States. 2. Savings and Loan Bailout, 1989- 3. Commercial crimesUnited States. I. , 1950- . II. Tillman, Robert. III. Title. 48-1984. Page v For our parents and to the memory of Michelle Smith-Pontell Page vii "We built thick vaults; we have cameras; we have time clocks on the vaults; we have dual controlall these controls were to protect against somebody stealing the cash. Well, you can steal far more money, and take it out the back door.
The estimated cost to taxpayers, not counting the interest payments on government bonds sold to finance the industry's bailout, is $150 to $175 billion. If interest over the next thirty years is added to this tab, the cost approaches $500 billion. 1 The savings and loan debacle involved a series of white-collar crimes unparalleled in American history. Numerous journalistic accounts and dozens of popular books, as well as authoritative pronouncements by economists and thrift industry consultants, have already appeared.
The American public was sent confusing and conflicting messages about the savings and loan debacle. In the early and mid-1980s, when the industry was already heavily in debt and its condition worsening every month, it received almost no political attention or news coverage. " By 198788, with insolvencies multiplying and the FSLIC itself bankrupt, those paying close attention might have heard the Reagan administration admit discreetly that something potentially troublesome was brewing. "But don't worry, we can handle it," the government reassured.
Big Money Crime: Fraud and Politics in the Savings and Loan Crisis by Kitty Calavita