Report: Watchdog wants promise of corporate fraud checks

A sign for Wall Street is carved into a building located near the New York Stock Exchange, Friday, Oct. 7, 2016.
A sign for Wall Street is carved into a building located near the New York Stock Exchange, Friday, Oct. 7, 2016.

UNDATED (WOOD) — The top inspector at the federal agency created following the 2008 bank bailout wants the next Congress to consider a law that would require Wall Street executives to sign an annual declaration that there’s no illegal activity going on in their organizations, MarketWatch reports.

Under Troubled Asset Relief Program Special Inspector General Christy Goldsmith Romero’s proposal, CEOs and high-level officials would also have to swear they have done enough within the organization to make the same promise to shareholders.

“While SIGTARP’s law enforcement has led to indictments of executives at mid-sized and smaller banks, we found it difficult to prove the criminal intent of senior executives at large financial institutions,” Romero told MarketWatch.

She went on to say that’s because the leaders are often isolated from knowledge of fraud.

TARP says its efforts have led to civil or criminal charges against 108 bankers. Of the 85 people charged criminally, 62 have been convicted.