Avoidable Financial Crisis

According the conclusions in a report by the Financial Crisis Inquiry Commission, government failings as well as corporate greed & ineptitude by several financial institutions are the greatest contributors to what was an 'avoidable" disaster, the financial collapse of 2008. The Federal inquiry casts blame upon the Federal Reserve for allowing shoddy mortgage lending excessive packaging of loans in order to sell them to investors taking risky bets on securities backed by those loans. The report points blame to several financial institutions as well as the Fed.

Fault lies with Fed Chairmen Alan Greenspan for failing to stem the flow of toxic mortgages and Ben Bernanke for failing to foresee the crises calling the actions of both Fed Chairmen negligent. Treasury secretary Tim Geithner was also cited for failing to recognize signs of trouble while he was president of the Federal Reserve Bank of New York.

- “The captains of finance and the public stewards of our financial system ignored warnings and failed to question, understand and manage evolving risks within a system essential to the well-being of the American public." In one of the reports findings it quotes bank executives admitting that they paid little attention to risks or the inevitable consequence of those risks that the American public continues to suffer and endure. When housing collapsed, risky short term loans and assets collapsed resulting in financial chaos and panic.

The commission interviewed 700+ witnesses and will post the report online as well as transcripts of the testimonies.

George Sinacori 



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