Summary: The Attorney General announced in 1989 that wrongdoing in the savings and loan industry may be the biggest white-collar swindle in U.S. history. Yet the federal government has collected only $365,000 of the $83.6 million in court-imposed fines and restitution stemming from convictions for savings and loan fraud--less that one-half of one percent of the amount ordered. Congress has provided the Department of Justice with significant additional powers and resources to address the crisis. Justice, however, is more and more pressed; since 1987, the Federal Bureau of Investigation has experienced a 54-percent increase in its major case workload. In response to this enormous challenge, Justice has appointed a Special Counsel for Financial Institution Fraud, who is responsible for ensuring that financial institution fraud investigations and prosecutions are effectively carried out. GAO testified, however, that this individual has limited information and authority to achieve that end, raising concerns about the government's ability to provide leadership over such a national multiagency effort. This issue becomes more serious when considered against the backdrop of a financial institution fraud crisis of unprecedented proportion. GAO believes that the government needs a unified effort to attack a crisis of this magnitude and scope. Whether such an approach can come from the Special Counsel remains to be seen.
