Eric Holder Anticipates More Financial Fraud Prosecutions
Six years ago this week, investment bank Lehman Brothers filed for bankruptcy, observed Attorney General Eric Holder at New York University Law School during a speech Wednesday. This marked “the culmination of a period of deregulation, excessive risk-taking, questionable lending practices, and defective underwriting that heralded the worst financial crisis since the Great Depression,” he said.
In his talk on Corporate Crime and Compliance, Holder credited “measures like the Dodd-Frank Act” as having restored stability to the system as a whole and having rebuilt the kind of “commonsense regulatory environment that was gradually eroded by special interests” over the last few decades.
Yet, “despite the progress we’ve seen and the safeguards we’ve implemented, we are already witnessing a troubling return to some of the very same profit-driven risk-taking that contributed to the 2008 collapse,” Holder said.
As this type of conduct re-emerges on Wall Street, it is important to instill the expectation that there will be tough enforcement of all applicable laws, Holder indicated. Read more on Accounting Today.