The Department of Justice has announced a new study that says the financial industry is “inconsistent in its management of its finances,” and some companies have been found to be too opaque about how they manage their accounts.
The DOJ has been looking at whether the financial services industry is complying with laws that govern the sale and disposal of securities.
In the wake of the 2008 financial crisis, many financial firms that had been regulated under Dodd-Frank made big investments in new technology and were not transparent about how those investments were being used.
The report from the DOJ’s Office of Inspector General is the latest step in a process that started with a report from 2010 by the House Financial Services Committee, which sought to identify which financial firms are the worst offenders.
The new report, which was released Thursday, has a broad scope, looking at nearly every financial firm in the United States, as well as its subsidiaries and affiliates, and the practices and financial statements that are used to manage its operations.
The most egregious examples the DOJ found were in hedge funds and private equity firms, which have been accused of using financial devices to hide the true value of their investments.
The companies that made the list of the worst companies included BlackRock, Bank of America, and Wells Fargo.
The Justice Department also found that at least three of the largest U.S. hedge funds had been found in the past to be hiding their true value from regulators.
The Department also said that a group of large private equity funds were using financial instruments to hide their true worth.
But the worst of the list includes large U. S. banks that have been under scrutiny in recent years for the failure of their investment vehicles to generate a profit.
Bank of New York Mellon was the most egregious offender, the report found, with $14.5 billion in losses.
“When we look at a company’s finances, we should be looking at the whole company, not just the most profitable business unit,” said Acting Assistant Attorney General Stephen M. Bellotti.
“We have to be vigilant and we have to take a hard look at all of our financial assets.”
The Department also released an interactive graphic on the DOJ website, showing how the financial companies that make up the worst offender list fared in the first three years of the study.
The graphic shows the companies that were the worst performing companies during those three years.
The Department has already filed criminal charges against several companies that have received millions of dollars in taxpayer money for misleading investors and making misleading statements about the value of the investments they are making.
A group of hedge funds was fined $1.5 million in 2014 for failing to disclose how many of its clients had received government funding.
The Treasury Department also announced in November that it had settled a complaint with the Justice Department over its treatment of BlackRock.
BlackRock has since moved to take steps to make it more transparent about its financial performance, including instituting an audit program.