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Organized Crime: Dirty Ring Around the White Collar
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16443 |
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Section : |
CURRENT ISSUES
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5 / 1989 |
2,771 Words |
| Author
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Ted Agres
Ted Agres is deputy managing editor of the Washington Times
newspaper and a veteran science writer. |
Somewhere, coursing through the international money laundering networks that stretch from Houston to Hong Kong, stashed away in numbered Swiss bank accounts, are billions of dollars siphoned form U.S. savings and loan (S&L) institutions.
How much money has been stolen and where it may be is anybody's guess. "In a lot of these cases, the assets have been dissipated through laundering schemes or have been taken out of the country and are beyond the reach of federal authorities," said Attorney General Dick Thornburgh.
"I think we're fooling ourselves to think any substantial portions of those assets are going to be recovered, notwithstanding our best efforts," Thornburgh told a Senate committee investigating the S&L crisis. Fraud and insider abuse accounted for 25 to 30 percent of the more than 500 savings and loan failures to date. Losses from fraud and embezzlement, Thornburgh added, totaled more than $2 billion in 1988 alone.
Privately, officials speculate that the actual figure may be far greater--as much as 80 percent of the $90 billion in estimated losses may be due to outright fraud. The Bush administration estimates that it will cost more than $157 billion to make the S&L industry once again solvent.
"There was a lot of front-end looting, with the crooks taking their fees and profits at the beginning of the deal," said Sen. Donald Riegle, Michigan Democrat and chairman of the Senate Banking Committee. "It's only later that the losses show up and the depositors have to be paid off" with taxpayer supplied
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