Insured-to-uninsured deposit switching victimized elderly savers at scale.

Evidence

Charles Keating Jr., chairman of the Lincoln Savings and Loan firm, became the face of corruption in the thrift industry. He persuaded customers to switch their federally insured deposits to uninsured high-risk ones, which eventually defaulted as worthless bonds. L. William Seidman, the former head of the Federal Deposit Insurance Corporation, characterized the deceitful switch of savings as “one of the most heartless and cruel frauds in modern history” (Dougherty, 2014). — Albert Bandura, Moral Disengagement, 1407