New Financial Fraud Enforcement Task Force Set To Subject Financial Institutions to Increased Governmental Scrutiny and Investigation
By The Securities Litigation and Enforcement Practice
On November 17, 2009, President Barack Obama established by Executive Order an interagency Financial Fraud Enforcement Task Force (the Task Force) to investigate and prosecute significant financial crimes and other violations relating to the current financial crisis and economic recovery efforts. The Task Force, which replaces the Corporate Fraud Task Force established by then President George W. Bush in 2002, will convene its first meeting in the next 30 days. Led by the Department of Justice with a steering committee composed of the Department of Treasury, HUD, and the SEC, the Task Force will likely subject financial institutions to immediate and substantial increased governmental scrutiny on federal, state, and local levels, as the fallout from the credit crisis continues.