Another round of Wall Street grilling concludes, but are we closer to the causes of the crisis?

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The commission in charge of figuring out what lead to the financial meltdown held another round of hearings last week. The Financial Crisis Inquiry Commission (FCIC) called executives from Bear Stearns, PIMCO, and the Securities and Exchange Commission (SEC) to the hot seat. Former Fed Secretary Henry J. Paulson and his predecessor Timothy Geithner shared their insight into what caused the biggest financial disaster since the Great Depression. Geithner told the commission that Wall Street experienced a “pure failure of discipline”. Paulson warned against over regulation of non traditional banks but conceded that our “archaic and outmoded financial regulatory system” contributed to the financial crisis. So, were the questions tough enough and did the answers give us anymore insight into what happened and how to prevent it from happening again? You’ll have to listen to Patt’s discussion with the head of the commission to find out.

Guest:

Phil Angelides, chairman, Financial Crisis Inquiry Commission


Comments

Lou

10 months ago

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Aside from looking at the technical reasons for the financial crisis: insane derivatives, short term greed from bad incentives, and idiocy on Wall St, has the Financial Crisis Inquiry Commission (FCIC) looked at the other reasons such as psychological?

Example: back in the bubble days everyone from the average person, Wall St Exec, and the Dem/Rep politician wouldn't dare question the value of housing as being out of whack. No one wanted to say that the emperor had no clothes. No one dared question the age old wisdom that housing was a great investment and part of the "American Dream".

Considering the FHA has 3.5% down loans RIGHT NOW, looks like that aspect of the cause of the crisis will never be explored.

Ed

10 months ago

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We already know the cause of the crisis.

Sadly, the FCIC will take no testimony, do zero research, and write no report fingering the culprit.

It was Congress, the Fed, Fannie Mae, and Freddie Mac.

So ask Mr. Angelides, "why are the real culprits off limits?? "

michael from Orange

10 months ago

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If Goldman Sachs gets away with business as usual and their crooked ways someone should take down that big tower of theirs in Manhattan with a nice explosion of their own along with taking out all those Goldman lobbyists in Washington DC.

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