Financial Crisis Of The United States - 1000 Words

Financial Crisis in the U.S. In 2008, the world experienced a horrific financial crisis which has been considered one of the worst recessions since the Great Depression of the 1930s. After posing an enormous negative effect on the U.S. economy, the financial crisis started to spread across Europe and the rest of the world. The financial crisis ruined economies, crumbled financial corporations and deprived lives. Over the past several years, financial innovation has presented U.S. households with an overflowing set of financial options to choose from. On a daily basis, millions of financial transactions take place throughout our banking and finance systems. These financial transactions may consist of writing checks, depositing cash, wiring†¦show more content†¦Following the bailouts, banks worldwide have continued to struggle in the fight against financial crime. The graph below clearly displays the severe disaster that U.S. banks have experienced in the years following the 2 008 financial crisis. In a post-crash market, financial firms face many challenges which include more severe regulations, more demanding consumers, and how to take advantage of new technology. Financial crime costs an estimated $20 billion in losses annually, and the operational costs of compliance continue to grow substantially each year. Due to the complexity of financial services, detecting and preventing fraud within the financial world is nearly impossible. The threats can be either domestic or international and they may originate internally or externally. â€Å"Perhaps the most disturbing statistic in the 2010 ACFE study is the one showing that only 6.7 percent of fraudsters had previous convictions for a fraud-related offense, and 7.7 percent had charges with no conviction, which means that 85.6 percent of the frauds were committed by persons who had never been charged with or convicted of a