Fraud matters, and control frauds pose unique risks.
It is important to understand fraud mechanisms. Economists grossly underestimate its prevalence and impact, and prosecutors have difficulties finding it, even without the political pressure from politicians who receive campaign contributions from the banking industry
Control fraud can occur in waves created by poorly designed deregulation that creates a criminogenic environment.
Waves of control fraud cause immense damage
Control frauds convert conventional restraints on abuse into aids to fraud
Conflicts of interest matter.
Deposit insurance was not essential to S&L control frauds.
There are not enough trained investigators in the regulatory agencies to protect against control frauds.
Regulatory
It is important to understand fraud mechanisms. Economists grossly underestimate its prevalence and impact, and prosecutors have difficulties finding it, even without the political pressure from politicians who receive campaign contributions from the banking industry
Control fraud can occur in waves created by poorly designed deregulation that creates a criminogenic environment.
Waves of control fraud cause immense damage
Control frauds convert conventional restraints on abuse into aids to fraud
Conflicts of interest matter.
Deposit insurance was not essential to S&L control frauds.
There are not enough trained investigators in the regulatory agencies to protect against control frauds.
Regulatory