White-Collar Crime in the Savings and Loan Scandal

Abstract

This article elaborates on the nature and scale of white-collar crime in the savings and loan crisis. It provides an overview of the thrift industry and the impact of deregulation on opportunities for fraud. Violations are then discussed under the general headings of “unlawful risk taking,”“collective embezzlement,” and “covering up,” and similarities are noted between criminal activities of thrift operators and those of persons associated with traditional organized crime. Government enforcement issues are discussed, focusing on both statutory changes and the law in action. Finally, the article argues that future policymaking, when considering changes in regulatory structure, must take into account the criminogenic environment produced by earlier legislation.