FDIC Launches 50 Criminal Inquiries of Failed Banks

The FDIC has launched criminal investigations targeting around 50 executives, directors, and employees from banks that failed during the financial crisis. Regulators won’t say which banks or executives are under investigation yet, but did tell the Wall Street Journal that banks of all sizes from across the country are involved, suspected of recklessness, fraud, and other criminal behavior.

“We anticipate results from our investigations,” said the deputy inspector general, but they “cannot predict” when they’ll be able to name names. The probes are similar to those conducted following the S&L crisis, except much smaller in scale; back then, 1,850 bankers were called to account. The FDIC will also file more lawsuits to recover money from former banking officials. (More FDIC stories.)