Geography 2153A/B Study Guide - Midterm Guide: Mortgage Fraud, Financial Institution, Embezzlement
28 Jun 2016
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Document Summary
Finance crimes: large-scale illegality that occurs in the world of finance and financial institutions (21st century. Banks from their earliest days have engaged in fraudulent activities. Banks have also been implicated in a wide range of specifically illegal acts intended to enhance profitability, bribery, money laundering, tax evasion and investment related fraud. Money laundering: the criminal practice of taking ill-gotten gains and moving them through a sequence of bank accounts so they look like legitimate profits from legal businesses. 1980"s criminal fraud cost the american taxpayer hundreds of dollars. Economic conditions of the 1970"s undermined the health of the savings and loan industry: high interest rates, slow growth, development of money market mutual funds, raising defaults and foreclosures and recession deepened. Two major laws were passed in the 1980"s which opened the doors to impeding disaster. Two acts led to the loosening of governmental control over the industry and made it possible for these scams to take place.
