Question 1

The federal bailout of the S & Ls in the early 1990s ensured that no corrupt
special deals could be made.

Accepted Answer

The federal bailout of the S & Ls in the early 1990s did not ensure that no corrupt special deals could be made. In fact, the savings and loan crisis was largely caused by corruption and fraudulent activities, leading to the collapse of many S & Ls. The federal bailout was aimed at preventing a broader economic collapse, but it did not address the underlying issues of corruption and mismanagement.

Question 2

The low figure estimate for thrift failure losses due to criminal fraud and waste is
in the range of $250 million.

Accepted Answer

The statement is incorrect. The low figure estimate for thrift failure losses due to criminal fraud and waste is not in the range of $250 million. The actual figure is much higher.

Question 3

Crimes of globalization are typically the consequence of policy decisions by high-level officials who are attempting to realize positive outcomes.

Accepted Answer

Crimes of globalization, such as environmental destruction or labor exploitation, often result from policy decisions made by those in power who prioritize economic growth over social or environmental justice. These decisions may be made with the intention of achieving positive outcomes such as increased trade or job creation, but the unintended consequences can be harmful to marginalized communities and ecosystems.

Question 4

The World Bank, set up to aid developing nations, has criticized other
international financial institutions for their complicity in crimes of globalization.

Accepted Answer

The World Bank itself is often criticized for its role in globalization and its impacts on developing nations, rather than criticizing other institutions for such reasons.

Question 5

Making high-risk loans was attractive to S & Ls in the 1980s because they
increased short-term profits and bonuses.

Accepted Answer

S & Ls in the 1980s were attracted to making high-risk loans because these loans would generate short-term profits and therefore increase their bonuses. However, this approach to lending ultimately led to the collapse of many institutions during the savings and loan crisis of the 1980s and 1990s.

Question 6

The dam at Pak Moon in Thailand is cited in the text as a case of global crime in
which the World Bank was involved.

Accepted Answer

The text mentions that the Pak Moon dam in Thailand was a case of global crime where the World Bank provided funding for the project.

Question 7

According to the text, banks have unethically and illegally deprived customers of
far more money than bank robbers and embezzlers have stolen from banks.

Accepted Answer

The text states that "banks have deprived customers of far more money than bank robbers and embezzlers have stolen from banks" which implies that banks have acted unethically and illegally to deprive customers of their funds.

Question 8

Only German corporations assisted the German Nazi government in their genocidal efforts.

Accepted Answer

While many German corporations did support and profit from the Nazi regime, corporations from other countries also played a role in supporting the Nazi war effort and its genocidal efforts, such as IBM and Ford.

Question 9

According to the text, bank regulators have often been closely allied with bank
directors and have promoted banking interests rather than the protection of bank
customers.

Accepted Answer

The text states that bank regulators have often been closely allied with bank directors and have prioritized banking interests, implying that the protection of bank customers may not have been their primary focus.

Question 10

New regulatory accounting practices established in the 1980s discouraged S & Ls
from taking risks.

Accepted Answer

The regulatory changes in the 1980s actually relaxed restrictions on the types of investments Savings and Loans (S&Ls) could make, encouraging them to take on riskier investments and loans.

Question 11

Private security firms operating in Iraq have been characterized as committing theft on a grand scale.

Accepted Answer

Numerous incidents have been reported where private security firms in Iraq have been accused of theft, bribery, and other unethical practices. One infamous example is the Blackwater USA incident in 2007, where 17 Iraqi civilians were killed by Blackwater security guards.

Question 12

The roles of the international financial institutions have been increasingly 	questioned because the privileged in developing countries have been the principal 	beneficiaries not the poor.

Accepted Answer

This statement accurately reflects a common criticism of international financial institutions such as the World Bank and International Monetary Fund. Critics argue that these institutions have primarily served the interests of elites in developing countries, rather than addressing the needs of the poor and marginalized populations.

Question 13

Historically, banks have enjoyed an almost uniformly positive image.

Accepted Answer

Historically, banks have had periods of both positive and negative public perception, influenced by economic conditions, financial crises, and scandals.

Question 14

The complicity of rich countries in the persistent global poverty in poor countries 	is referred to as "systematic crime."

Accepted Answer

The complicity of rich countries in persistent global poverty in poor countries is often referred to as "systematic crime." Many argue that policies and practices of wealthy countries have contributed to and perpetuated poverty in developing nations, making it a systemic issue.

Question 15

People in developing countries may be especially vulnerable to globalized forms
of white collar crime.

Accepted Answer

Developing countries may have weaker laws and regulations, a higher level of corruption, and less access to resources for enforcement and prevention of white collar crime, making their populations more vulnerable to globalized forms of white collar crime. Additionally, globalized white collar crime can take advantage of the power imbalances between developed and developing countries.

Question 16

State-corporate crime occurs only at the international level.

Accepted Answer

State-corporate crime can occur at both the national and international level. It refers to illegal or unethical actions committed by corporations in collaboration with state officials or institutions. These actions can range from environmental pollution to corruption to human rights abuses, and can occur in both domestic and international contexts.

Question 17

The Challenger explosion cannot be considered an example of state-corporate
crime.

Accepted Answer

The Challenger explosion involved both state (NASA) and corporate (Morton Thiokol, the manufacturer of the faulty O-rings) actors, making it a prime example of state-corporate crime. The disaster could have been prevented if safety concerns raised by engineers had been adequately addressed by both NASA and Morton Thiokol.

Question 18

Predatory lending and money laundering are the only significant finance crimes
discussed in the text.

Accepted Answer

The statement is false. The text may discuss other significant finance crimes, but predatory lending and money laundering are two of them.

Question 19

The looting of the S & Ls was carried out by a new breed of promoter and
swindler who took over deregulated thrifts, while traditional thrift executives were not
implicated.

Accepted Answer

The looting of the Savings and Loans (S&Ls) involved a range of actors, including traditional thrift executives, who were implicated alongside new promoters and swindlers in exploiting the deregulated environment for personal gain.

Question 20

For many decades, the Savings and Loans were a popular depository for small
savers.

Accepted Answer

The Savings and Loans institutions were popular among small savers for many decades before they faced a crisis in the 1980s and 1990s.

Quiz 6: State-Corporate Crime, Crimes of Globalization, and Finance Crime

The federal bailout of the S & Ls in the early 1990s ensured that no corrupt special deals could be made.

The low figure estimate for thrift failure losses due to criminal fraud and waste is in the range of $250 million.

Crimes of globalization are typically the consequence of policy decisions by high-level officials who are attempting to realize positive outcomes.

The World Bank, set up to aid developing nations, has criticized other international financial institutions for their complicity in crimes of globalization.

Making high-risk loans was attractive to S & Ls in the 1980s because they increased short-term profits and bonuses.

The dam at Pak Moon in Thailand is cited in the text as a case of global crime in which the World Bank was involved.

According to the text, banks have unethically and illegally deprived customers of far more money than bank robbers and embezzlers have stolen from banks.

Only German corporations assisted the German Nazi government in their genocidal efforts.

According to the text, bank regulators have often been closely allied with bank directors and have promoted banking interests rather than the protection of bank customers.

New regulatory accounting practices established in the 1980s discouraged S & Ls from taking risks.

Private security firms operating in Iraq have been characterized as committing theft on a grand scale.

The roles of the international financial institutions have been increasingly questioned because the privileged in developing countries have been the principal beneficiaries not the poor.

Historically, banks have enjoyed an almost uniformly positive image.

The complicity of rich countries in the persistent global poverty in poor countries is referred to as "systematic crime."

People in developing countries may be especially vulnerable to globalized forms of white collar crime.

State-corporate crime occurs only at the international level.

The Challenger explosion cannot be considered an example of state-corporate crime.

Predatory lending and money laundering are the only significant finance crimes discussed in the text.

The looting of the S & Ls was carried out by a new breed of promoter and swindler who took over deregulated thrifts, while traditional thrift executives were not implicated.

For many decades, the Savings and Loans were a popular depository for small savers.