Eighty executives of banks that received funds from the Troubled Asset Relief Program have so far been charged with crimes.
Including criminal and civil charges, there have been 102 bankers charged
for their conduct leading up to and during the financial crisis.
The charges were filed by the U.S. Department of Justice and the Securities and Exchange Commission, as well as local prosecutors.
The statistics were announced Tuesday by the
Special Inspector General for the Troubled Asset Relief Program.
Included among the bankers charged were 80 who were criminally charged.
Out of 58 who have been convicted so far, 35 have been sentenced to prison.
“Many masked their banks’ financial condition by hiding and lying about past-due loans, hoping that their criminal activity would avoid charge offs,” Special Inspector General Christy Goldsmith Romero stated in the announcement. “Instead, bad money went after good, creating vicious cycles that eviscerated capital.
“Employees, businesses, and shareholders have suffered, sending shock waves through not just local communities but regional economies and even the national economy.”
Among convicted executives cited in SIGTARP’s announcement were Edward Woodard, former chief executive officer and chairman of Bank of the Commonwealth, who was sentenced to 23 years in prison; Catherine Kissick, the former senior vice president of Colonial Bank who enabled massive fraud at Taylor Bean & Whitaker; and Gil Lundstrom, former CEO of TierOne Bank.
All three banks failed.
Romero noted in the announcement, “We expect more bankers to be indicted.”
The other 22 executives who were civilly charged served as CEOs or presidents.
SIGTARP touted civil cases against former Bank of America Corp. executives, including former chairman and CEO Kenneth D. Lewis.
