Bank fraud

Widespread fraud in the USA savings and loan institutions during the 1980s is complicating government attempts to rescue thousands of institutions declared insolvent. In 1990 it was estimated that 60% of the savings and loans institutions seized in order to protect investors were the victims of fraud.

In 1998, the head of the World Bank established a special internal fraud team and hired a team of external investigators to examine allegations of corruption and embezzlement against bank officials in Washington. Among the projects under scrutiny were World Bank-funded schemes in Russia, Japan and Indonesia, countries at the centre of the international financial crisis.