It Begins: FDIC Has 50 Criminal Probes Into Executives At Failed Banks

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According to WSJ, the FDIC is conducting about 50 criminal probes into executives at failed banks.

In an interview, Fred W. Gibson, deputy inspector general at the FDIC, which works with the Federal Bureau of Investigation to investigate crime at financial institutions, said the probes involve failed banks of all sizes in cities across the U.S. The FDIC is also ramping up civil claims to recover money from former bankers at busted lenders. He declined to identify any of the people or banks under investigation.

“We anticipate results from our investigations, although we cannot predict when a particular case will reach a stage at which disclosure of specifics would be appropriate,” Mr. Gibson said.

We probably should see more perp walks resulting from the crisis, however it’s lame that they’re all in failed banks, which really just suggests that what’s being criminalized here is failure. Did people really not do some of the same bad behaviour at banks that managed to hold on?

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