FDIC Conducting About 50 Criminal Investigations Into Failed Banks
A November 17, 2010 article in The Wall Street Journal reports that the Federal Deposit Insurance Corp (FDIC) is conducting about 50 criminal investigations in connection with U.S. banks that have failed since the start of the financial crisis. The FDIC is responsible for dealing with bank failures. Its open criminal investigations concern former executives, directors and employees at failed U.S. banks who may have engaged in recklessness, fraud or other criminal behavior, the Journal said. The FDIC is also increasing the pace of its civil claims to recover money from former bankers at busted lenders, the newspaper said.
More than 300 banks and savings institutions have failed since the beginning of 2008, but only a few have led to criminal charges against bank officials.
