The Best Way to Rob a Bank Is to Own One
by William K. Black · first published 2005
11mentions
7recommended by
9HN commenters
2013–2024first – last mentioned
78% recommend22% neutral
Why HN recommends it
Firsthand account by a former S&L regulator on how accounting control fraud worked, with many examples of appraisal fraud and bad lending; recommended for readers wanting context on the S&L crisis and 2008.
Summarised by Claude from recommending comments
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Go read William K. Black[0] on the subject of accounting control fraud. He's the author of The Best Way to Rob a Bank is to Own One: How Corporate Executives and Politicians Looted the S&L Industry [2005] He was one of the lead regulators during the Savings and Loan crisis. Follow a few of the links on his Wikipedia page. It was fraud:…
on “Blowing the Whistle on the Mortgage Bubble” ↗"The Best Way to Rob a Bank is to Own One" - https://www.amazon.com/Best-Way-Rob-Bank-Own/dp/0292754183
on “Ask HN: What skills will be useful during an upcoming recession/depression?” ↗…spouse has just died and they haven't had the chance to move money from to another account often lost half of their net worth. Take any book on the period and you'll find many examples. I'd recommend The Best Way to Rob a Bank is to Own One by William K. Black. Edit: In the dividend list, look for the latest information for any bank. It sometimes takes a decade for the last payment to be paid.
on “FDIC Failed Bank List” ↗Not the original poster, but the book "The Best Way to Rob a Bank is to Own One" by William K. Black (former bank regulator during the S&L crisis) might shed some light onto the S&L crisis, if not 2008's comparative response, though not directly.
on “Wells Fargo to pay $3.7B settling charges it wrongfully seized homes and cars” ↗"The Best Way To Rob A Bank Is To Own One," by Robert Prasch. Here's a good summary: https://link.gale.com/apps/doc/A151201230/AONE?u=googleschol...
on “Books to read to understand financial crime” ↗…appraisal fraud and liars loans. If you listen to Bill Black's recipe for control fraud it's more or less what you're describing[0], just a little slower and a little more "book cookey". His book "The Best Way to Rob a Bank is to Own One" has many examples of control fraud. Sure it's a little more deceptive than just opening a spreadsheet and typing in the numbers, but they're totally faking capital levels in order to obtain liquidity…
on “FTX tapped into customer accounts to fund risky bets, setting up its downfall” ↗Another important book is "The Best Way to Rob a Bank is to Own One." The author appeared on Bill Moyers Journal: https://www.pbs.org/moyers/journal/04032009/watch.html
on “The U.S. Needs to Crack Down on White-Collar Crime” ↗He should have read Bill Black’s classic The Best Way to Rob a Bank is to Own One.
on “Crypto 'pig butchering' scam wrecks bank, sends ex-CEO to prison for 24 years” ↗…harmed) by hustling junk bonds? Is that okay now that he is donating money to cancer research? Forbes and CNN certainly think so[2] (even in 2004, for that matter). William K. Black put it well: "the best way to rob a bank is to own one." [1] https://web.archive.org/web/20220428215122/https://www.nytim... [2] https://money.cnn.com/magazines/fortune/fortune_archive/2004...
on “The Incredibly Stupid One” ↗As Bill Black says: the best way to rob a bank is to own one. (He even wrote a book titled like that.)
on “The Late, Great American WASP” ↗Not very original. It's been done over and over again during the S&L crisis and later. The Best Way to Rob a Bank is to Own One. https://www.brookings.edu/bpea-articles/looting-the-economic...
on “Signature Bank Closed by FDIC” ↗