Taxpayers Cost from Corporate and Government Crime

Our (taxpayers) cost's from corporation and bank fraud:

S & L fraud and scandal- bailout of the thrifts has already cost taxpayers some $165 billion. Total thrift failure due to criminal fraud and waste; estimated at $250 billion, cost of resolving the crisis exceeds $1 trillion. (175)

Lincoln Savings and Loan- an additional cost of $1.3 billion to taxpayers due to five Senators (John McCain, Alan Cranston, Donald Reigle, John Glenn, and Dennis DeConcini) two year delay in closing the company. (177)

Subprime mortgage loans

Countrywide Financial- set aside $8 billion to modify mortgage loans.

First Alliance Mortgage- agreed to pay $60 million for deceptive practices which resulted in 18,000 people loosing their home and/or putting them in massive debt. Payout doesn’t equal the amount of damages done to economy. (172)

Fanny Mae and Freddy Mac: profound effect on the real estate market and caused huge numbers of foreclosures. (173)

This isn't even a scratch of what other major banks, corporations, and government actions have cost us. As citizens, we are left to pay the cost of selfish decisions and actions, by those entrusted to protect the well-being of man kind and our society. Not even 5 institutions have cost us over a trillion dollars to be paid by the working citizens of America. Morever, it is frighting the lack of awareness by American citizens who are left to not only pay the financial cost, but also, the cost of our time to overcome and recover from these acts of crime, that may not be characterized as illegal, but cause direct harm to humanity.

All information was obtained from Trusted Criminals: White Collar Crime in Contemporary Society by David Fredrichs 2010.