Banks Investigated For Fraud!

I’m not holding my breath.

From the Associated Press

The federal government has opened criminal investigations into approximately 50 executives and directors of U.S. banks that have collapsed during the financial crisis.

Deputy Inspector General Fred Gibson said Wednesday the inspector general’s office at the Federal Deposit Insurance Corp. has been probing the role of the executives in bank failures around the country.

The criminal investigations are separate from civil lawsuits approved by the FDIC’s board against some 80 bank executives, employees and directors. The FDIC is seeking to recoup about $2 billion in bank losses that the regulator says were the result of negligence or misconduct by executives or directors.

The FDIC has shut down or seized 311 banks since January 2008 at a cost of around $77 billion. The criminal probes were reported earlier by The Wall Street Journal.

2008!! What was the hurry? They waited two full years and suddenly woke up morning and thought, “Hey, these banks collapsed. I wonder if something could be wrong?”

Whenever a bank collapses, some alarm bells should go off.

Let me give them some advice, when 100 banks fail, criminality is likely. No, that number is not 311, it’s 100. If you wait until the number is 311, you might appear to be foolish or unwilling to prosecute bank fraud.

James Pilant