William K. Black
White-Collar Crime Expert
CLASSIFICATION: Financial Crime
LOCATION
Dearborn, Michigan
TIME PERIOD
1980s
VICTIMS
0 confirmed
On April 3, 2009, William K. Black, a professor of law and economics at the University of Missouri-Kansas City, appeared on PBS's Bill Moyers Journal, where he provided critical analysis of the 2008 financial crisis, attributing it to systemic fraud and mismanagement within the financial sector. Black, who previously played a significant role in exposing corruption during the Savings and Loan Crisis, highlighted the prevalence of "liar loans" and other deceptive practices that he argued constituted a Ponzi scheme. His commentary drew on his extensive background in white-collar crime and regulation, underscoring the need for accountability in financial institutions. As of now, Black continues to be an influential voice in discussions surrounding financial regulation and fraud prevention, actively engaging in public discourse on these issues.
William K. Black is believed to have played a crucial role in exposing the corruption associated with the Savings and Loan Crisis, particularly through his documentation of the Keating Five meeting. Some speculate that his actions led to significant political fallout and increased scrutiny of banking regulations. Additionally, there are theories that his concept of "control fraud" has implications for understanding systemic corruption in financial institutions.
The Intricate Web of William K. Black: A Crusade Against Financial Malfeasance
Early Life and Education
Born on September 6, 1951, in Dearborn, Michigan, William Kurt Black embarked on a journey that would see him become a formidable figure in the realm of law, economics, and white-collar crime investigation. Black's academic pursuits took him to the University of Michigan Law School, where he earned a J.D., and subsequently to the University of California, Irvine, where he completed a Ph.D. His deep understanding of law and economics would later shape his career as an associate professor at the University of Missouri-Kansas City (UMKC), contributing significantly to the fields of public finance and regulation.
Career and Contributions
Black's early career was marked by his role as the litigation director for the Federal Home Loan Bank Board (FHLBB) from 1984 to 1986. His expertise in banking regulation deepened when he served as the deputy director of the Federal Savings and Loan Insurance Corporation (FSLIC) in 1987. Shortly thereafter, he became the Senior Vice President and General Counsel of the Federal Home Loan Bank of San Francisco, overseeing some of the largest thrift banks in the United States.
His tenure as the executive director of the Institute for Fraud Prevention from 2005 to 2007 further solidified his reputation as an authority on financial fraud and white-collar crime. It was during this period that Black introduced the concept of "control fraud," where executives exploit their organizations as instruments of deceit.
Exposing the Savings and Loan Scandal
The Savings and Loan crisis of the 1980s and 1990s was a defining chapter in Black's career. He became a central figure in exposing the corruption that plagued Congress during this tumultuous period. Black's pivotal actions included taking notes during the infamous Keating Five meeting, which brought congressional misconduct to light. This scandal involved five U.S. Senators, including John Glenn and John McCain, who were accused of providing favors to savings and loan associations in exchange for contributions and perks.
Despite the senators receiving minimal consequences, Black's efforts did not go unnoticed. His relentless pursuit of justice led Charles Keating, the banker at the heart of the scandal, to pen a memo demanding to "get Black—kill him dead"—a metaphorical expression of the threat Black posed to corrupt practices.
Insights into the 2008 Financial Crisis
William K. Black's insights into financial crises did not end with the Savings and Loan debacle. On April 3, 2009, he appeared on Bill Moyers Journal on PBS to dissect the 2008 financial crisis. Black labeled it a "Ponzi scheme," highlighting the fraudulent nature of "liar loans" and the misleading triple-A ratings that masked the underlying risks. He criticized the administration, including Timothy Geithner, for allegedly covering up the severity of the crisis, warning that such actions could prolong economic woes, as seen in Japan's lost decade.
His continued engagement on the topic led to another interview with Moyers on April 23, 2010, where he provided further analysis of the crisis's roots and implications.
Testimony on Lehman Brothers and Irish Banking Inquiry
Black's expertise was summoned before the House Financial Services Committee on April 20, 2010, to testify about Lehman Brothers' bankruptcy. He attributed Lehman's downfall largely to fraud, pointing to the bank's reliance on "liar's loans" through its subsidiary, Aurora Loan Services. These loans, also known as Alt-A loans, were identified as breeding grounds for mortgage fraud, which Lehman had leveraged to produce fictitious income.
In February 2015, Black addressed the Irish parliament's banking inquiry, harshly critiquing the Irish bank guarantee of September 2008 as "the most destructive own goal in history," which he argued had catastrophic consequences for the nation.
Publications and Legacy
William K. Black's prolific writing includes "The Best Way to Rob a Bank is to Own One," where he analyzes how executives and politicians exploited the Savings and Loan industry. His body of work, spanning numerous articles and books, explores themes of control fraud, corruption, and regulatory failures. His academic contributions continue to influence discussions on economic policy and financial regulation.
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Black Joins FHLBB
William K. Black becomes litigation director for the Federal Home Loan Bank Board.
Black Becomes Deputy Director of FSLIC
William K. Black is appointed deputy director of the Federal Savings and Loan Insurance Corporation.
Savings and Loan Crisis Exposed
Black plays a key role in exposing corruption during the Savings and Loan Crisis, including the Keating Five scandal.
Institute for Fraud Prevention
Black serves as executive director of the Institute for Fraud Prevention, focusing on white-collar crime.
Moyers Journal Appearance
Black appears on Bill Moyers Journal, discussing the causes of the 2008 financial crisis.
Testifies on Lehman Bankruptcy
Black testifies before Congress about the role of fraud in the bankruptcy of Lehman Brothers.
Second Moyers Journal Appearance
Black returns to Bill Moyers Journal to provide updates on the financial crisis.
Testifies in Ireland
Black testifies before the Irish parliament's banking inquiry, criticizing the bank guarantee.
On April 3, 2009, William K. Black, a professor of law and economics at the University of Missouri-Kansas City, appeared on PBS's Bill Moyers Journal, where he provided critical analysis of the 2008 financial crisis, attributing it to systemic fraud and mismanagement within the financial sector. Black, who previously played a significant role in exposing corruption during the Savings and Loan Crisis, highlighted the prevalence of "liar loans" and other deceptive practices that he argued constituted a Ponzi scheme. His commentary drew on his extensive background in white-collar crime and regulation, underscoring the need for accountability in financial institutions. As of now, Black continues to be an influential voice in discussions surrounding financial regulation and fraud prevention, actively engaging in public discourse on these issues.
William K. Black is believed to have played a crucial role in exposing the corruption associated with the Savings and Loan Crisis, particularly through his documentation of the Keating Five meeting. Some speculate that his actions led to significant political fallout and increased scrutiny of banking regulations. Additionally, there are theories that his concept of "control fraud" has implications for understanding systemic corruption in financial institutions.
The Intricate Web of William K. Black: A Crusade Against Financial Malfeasance
Early Life and Education
Born on September 6, 1951, in Dearborn, Michigan, William Kurt Black embarked on a journey that would see him become a formidable figure in the realm of law, economics, and white-collar crime investigation. Black's academic pursuits took him to the University of Michigan Law School, where he earned a J.D., and subsequently to the University of California, Irvine, where he completed a Ph.D. His deep understanding of law and economics would later shape his career as an associate professor at the University of Missouri-Kansas City (UMKC), contributing significantly to the fields of public finance and regulation.
Career and Contributions
Black's early career was marked by his role as the litigation director for the Federal Home Loan Bank Board (FHLBB) from 1984 to 1986. His expertise in banking regulation deepened when he served as the deputy director of the Federal Savings and Loan Insurance Corporation (FSLIC) in 1987. Shortly thereafter, he became the Senior Vice President and General Counsel of the Federal Home Loan Bank of San Francisco, overseeing some of the largest thrift banks in the United States.
His tenure as the executive director of the Institute for Fraud Prevention from 2005 to 2007 further solidified his reputation as an authority on financial fraud and white-collar crime. It was during this period that Black introduced the concept of "control fraud," where executives exploit their organizations as instruments of deceit.
Exposing the Savings and Loan Scandal
The Savings and Loan crisis of the 1980s and 1990s was a defining chapter in Black's career. He became a central figure in exposing the corruption that plagued Congress during this tumultuous period. Black's pivotal actions included taking notes during the infamous Keating Five meeting, which brought congressional misconduct to light. This scandal involved five U.S. Senators, including John Glenn and John McCain, who were accused of providing favors to savings and loan associations in exchange for contributions and perks.
Despite the senators receiving minimal consequences, Black's efforts did not go unnoticed. His relentless pursuit of justice led Charles Keating, the banker at the heart of the scandal, to pen a memo demanding to "get Black—kill him dead"—a metaphorical expression of the threat Black posed to corrupt practices.
Insights into the 2008 Financial Crisis
William K. Black's insights into financial crises did not end with the Savings and Loan debacle. On April 3, 2009, he appeared on Bill Moyers Journal on PBS to dissect the 2008 financial crisis. Black labeled it a "Ponzi scheme," highlighting the fraudulent nature of "liar loans" and the misleading triple-A ratings that masked the underlying risks. He criticized the administration, including Timothy Geithner, for allegedly covering up the severity of the crisis, warning that such actions could prolong economic woes, as seen in Japan's lost decade.
His continued engagement on the topic led to another interview with Moyers on April 23, 2010, where he provided further analysis of the crisis's roots and implications.
Testimony on Lehman Brothers and Irish Banking Inquiry
Black's expertise was summoned before the House Financial Services Committee on April 20, 2010, to testify about Lehman Brothers' bankruptcy. He attributed Lehman's downfall largely to fraud, pointing to the bank's reliance on "liar's loans" through its subsidiary, Aurora Loan Services. These loans, also known as Alt-A loans, were identified as breeding grounds for mortgage fraud, which Lehman had leveraged to produce fictitious income.
In February 2015, Black addressed the Irish parliament's banking inquiry, harshly critiquing the Irish bank guarantee of September 2008 as "the most destructive own goal in history," which he argued had catastrophic consequences for the nation.
Publications and Legacy
William K. Black's prolific writing includes "The Best Way to Rob a Bank is to Own One," where he analyzes how executives and politicians exploited the Savings and Loan industry. His body of work, spanning numerous articles and books, explores themes of control fraud, corruption, and regulatory failures. His academic contributions continue to influence discussions on economic policy and financial regulation.
Sources
No Recent News
No recent news articles found for this case. Check back later for updates.
No Evidence Submitted
No evidence found for this case. Be the first to submit evidence in the comments below.
Join the discussion
Loading comments...
Black Joins FHLBB
William K. Black becomes litigation director for the Federal Home Loan Bank Board.
Black Becomes Deputy Director of FSLIC
William K. Black is appointed deputy director of the Federal Savings and Loan Insurance Corporation.
Savings and Loan Crisis Exposed
Black plays a key role in exposing corruption during the Savings and Loan Crisis, including the Keating Five scandal.
Institute for Fraud Prevention
Black serves as executive director of the Institute for Fraud Prevention, focusing on white-collar crime.
Moyers Journal Appearance
Black appears on Bill Moyers Journal, discussing the causes of the 2008 financial crisis.
Testifies on Lehman Bankruptcy
Black testifies before Congress about the role of fraud in the bankruptcy of Lehman Brothers.
Second Moyers Journal Appearance
Black returns to Bill Moyers Journal to provide updates on the financial crisis.
Testifies in Ireland
Black testifies before the Irish parliament's banking inquiry, criticizing the bank guarantee.