The Trajectory of White-Collar Crime Following the Great Economic Meltdown

This article reviews issues in white-collar crime research related to both the causes and aftermath of the 2008 economic meltdown. The absence of major prosecutions, new legislation designed to prevent similar debacles, and post-meltdown case studies are discussed to illuminate the culture and business practices of major companies that were responsible for the unprecedented losses to the financial system and the resulting taxpayer bailout. We conclude that despite new legislation, regulatory gaps and continued lack of adequate oversight as a result of intense lobbying by the financial industry, as well as a non-understanding of the role of fraud in major financial debacles by policy makers, virtually guarantee that future financial crises will occur due to fraud, even in the most elite firms.