Financial Fraud, Wrongdoing, and Regulation: A Review of Recent Cases from the US Banking Industry

Murray Bryant and Throstur Olaf Sigurjonsson ()
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Murray Bryant: Ivey Business School
Throstur Olaf Sigurjonsson: University of Iceland

A chapter in Corporate Governance, Organizational Ethics, and Prevention Strategies Against Financial Crime, 2025, pp 133-153 from Springer

Abstract: Abstract Large financial institutions licensed in the USA are monitored by multiple regulatory agencies. This chapter examines recent cases related to instances when US financial institutions are subject to fines, penalties, and remediation. Regulatory agencies involved in such instances are the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the Department of Justice, the Commodities Futures Trading Commission, the Federal Deposit Insurance Corporation, and the Consumer Financial Protection Bureau. In almost every instance recorded, penalties exacted by regulators take the form of a consent decree where banks have agreed to a statement of facts and background with a regulator and the wrongdoing. In this chapter, it is highlighted what has been described as serial offenders and therefore agencies view with grave concern malfeasance and a culture of wrongdoing of financial institutions. An act of wrongdoing by a few people or willful ignorance by others can have a detrimental effect on reputational capital of the financial institutions. Trust lies at the heart of financial services and thus regulatory agencies are an important element of ensuring the efficacy of financial systems.

Keywords: Accounting scandals; Financial regulation; Regulatory agencies; Reputational capital; Corporate behavior; Accountability; Fraud; Financial services; Social trust (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:csrchp:978-3-031-74523-2_7

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DOI: 10.1007/978-3-031-74523-2_7

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