The financial sector is a pillar of American economics. With the ability share, invest, lend, save and pool financial resources, the standard of living would remain dismal, companies would be ill-equipped to operate and individuals would have little recourse for buying and selling. As a busy and profitable industry, financiers are exposed to many risks and liabilities over their services. Consumers expect a level of honesty and safety with their transactions, while regulations demand transparency, insurance and protection from fraud. At times, incidents occur which require the involvement of a banking expert to resolve.
When Things Go Wrong
Financial litigation can be a devastating term for those in the banking industry. Banks and traditional lenders are not the only companies in danger of a lawsuit. Any company dealing with financial transactions or the exchange of monies is susceptible to criminal, civil or administrative claims of error or wrongdoing. Investigations can also plague entire companies or individual employees who may be in high-ranking offices. Payment processing, credit cards companies, investment firms, mortgage lenders, brokerage firms, private equity and hedge funds brokers, credit unions and insurance companies all fall under a category of those susceptible to litigation.
Keeping Careful Watch
In order to keep all financial dealings ethical and honest, there are many government agencies that maintain oversight of these transactions. After the stock market crash in 1929, then-President Franklin Roosevelt wanted to protect the American people from another financial crisis as such a nationwide level. Under his direction, the FDIC become a key player in insuring funds and investments. The Banking Act of 1933 allowed for the creation of an independent US government agency to help protect against loss for eligible bank deposits in the event of a bank failure.
Since the spotlight on the financial industry has continued to expand, precautions taken to ensure transactions have moved beyond the value of the deposit. Cybersecurity threats are being addressed, as is fraud, theft, insider trading and many more areas of operations.