February 17, 2011 |
The federal commission that investigated the financial crisis descended into partisanship, with its Democratic majority pushing to find "villains and victims" rather than the true causes, according to the panel's top Republican. "It was clear from the beginning it was a partisan environment," former Bakersfield Rep. Bill Thomas told the House Financial Services Committee on Wednesday, noting that with six Democrats and four Republicans on the panel, "the math is simple. " But the chairman of the Financial Crisis Inquiry Commission, Democrat Phil Angelides, also of California, defended the 525-page report released last month.
September 24, 2010 |
The rush to profit from turning subprime mortgages into top-rated Wall Street securities encouraged loan originators, investment bankers and speculators "to push risk tolerance to its limits," a Chapman University law professor told a federal panel Thursday. The profit motive also discouraged due-diligence experts from blowing the whistle on faulty underwriting, Kurt Eggert, an expert on predatory lending, testified at the final field hearing of the Financial Crisis Inquiry Commission.
January 27, 2011 |
A federal commission created to investigate the financial crisis is pointing the finger at nearly everyone, from overextended homeowners to reckless executives and timid regulators. "The crisis was the result of human action and inaction, not of Mother Nature or computer models gone haywire," the Financial Crisis Inquiry Commission said in its majority report to Congress. "To paraphrase Shakespeare, the fault lies not in the stars, but in us. " Despite assigning widespread blame, the Democratic majority's 525-page account also asserts that the near-meltdown didn't have to happen.
September 2, 2010 |
The former chief executive of Lehman Bros. came out swinging at federal officials Wednesday, blaming them for failing to give the beleaguered investment banking firm the extraordinary help it gave to its rivals — aid that would have saved it from the 2008 collapse that helped trigger the worldwide financial crisis. A defiant Richard S. Fuld Jr. sparred with Federal Reserve officials during a hearing before a congressionally appointed panel investigating the financial crisis.
April 14, 2011 |
After a two-year bipartisan probe, a Senate panel has concluded that Goldman Sachs Group Inc. profited from the financial crisis by betting billions against the subprime mortgage market, then deceived investors and Congress about the firm's conduct. Some of the findings in the report by the Senate's Permanent Subcommittee on Investigations will be referred to the Justice Department and the Securities and Exchange Commission for possible criminal or civil action, said Sen. Carl Levin (D-Mich.)
January 14, 2010 |
They admitted making mistakes and they regretted the economic devastation their decisions wrought, but the heads of four major financial firms wouldn't take direct blame for the massive meltdown in some tough questioning today by a government panel investigating the causes of the financial crisis. "We did eat our own cooking, and we choked on it," John Mack, chairman of Morgan Stanley, said about the large bets his industry made on the continued rise in housing prices. The high-profile appearance Wednesday of Mack and other Wall Street titans at the first public hearing of the Financial Crisis Inquiry Commission came as President Obama prepared to announce Thursday a new levy on banks to help recoup expected losses from the $700-billion bailout fund.
April 17, 2010 |
There comes a point in every man-made disaster when the guilty parties are identified and brought to book. That way the victims can at least snatch from the wreckage some confidence that lessons have been learned and mistakes recognized. If Friday's federal fraud lawsuit against Goldman, Sachs & Co. over its role in the subprime mortgage meltdown signals the start of that process, all we can say is: Finally . Goldman, like other big Wall Street banks, has taken the position that the crisis was something of a natural disaster.
September 17, 2009 |
A special commission to determine the causes of the financial crisis is trying to pattern itself after the bipartisan panel that investigated the 2001 terrorist attacks -- but some Republicans say the deck already is stacked against them. The 10-person commission meeting for the first time today consists of six people selected by Democrats and four by the GOP, a departure from the even split on the so-called 9/11 commission. And it's headed by longtime loyalists from each party, which some worry could lead to partisan disputes as the Financial Crisis Inquiry Commission tackles the politically explosive task of what triggered the worst economic meltdown since the Great Depression.
June 8, 2010 |
Goldman Sachs Group Inc., already under fire for its actions leading up to the financial crisis, came under attack from a federal commission that accused it of refusing to divulge information, including documents detailing its controversial bets on the mortgage market. Saying it had been stonewalled, the federal commission investigating the financial crisis on Monday took the unusual step of issuing a subpoena to Goldman that demanded information about the investment bank's role before and during the mortgage meltdown and credit crunch.
July 2, 2010 |
Executives at Goldman Sachs Group Inc. on Thursday defended the investment bank's aggressive pursuit of billions of dollars in payments from American International Group Inc. in 2008, which critics said added to the deep financial problems of the insurance giant and led to a $182-billion federal bailout. Goldman and AIG sparred over the value of mortgage bonds behind complex financial derivatives for more than a year before the government rescued AIG in September 2008, executives from the two companies told the Financial Crisis Inquiry Commission.