[QODLink]
Business
US financial crisis was 'avoidable'
Congressional commission releases report saying 2008 meltdown could have been prevented.
Last Modified: 27 Jan 2011 21:00 GMT

Wall Street executives, US regulatory agencies and the US Federal Reserve are all being blamed in a new report into the causes of the 2008 financial meltdown.

The country's presidential commission also concluded the financial meltdown could have been avoided altogether. But even as it wraps up its two year inquiry, the 10-member panel remains sharply divided over the causes.

The report reflects the views of six Democrats, while the four Republicans have written dissenting opinions.

It also lays much of the blame on what it says are the "reckless" practices of financial firms like Fannie Mae, AIG and Bear Stearns. It says poor controls led to excessive borrowing and risky investments on mortgages.

It also faults "weak" government regulators like the Securities and Exchange Commission and US Central Bank for failing to rein in the banks they supervised.

Singled out is Alan Greenspan, the former Federal Reserve chairman, for backing deregulation practices that accelerated the subprime mortgage crisis.

Lobbyists are also being heavily blamed.

Al Jazeera's Nick Spicer reports.

Source:
Al Jazeera
Topics in this article
People
Country
Organisation
Featured on Al Jazeera
Muslim volunteers face questioning and threat of arrest, while aid has been disrupted or blocked, charities say.
Six months on, outrage and sorrow over the mass schoolgirl abduction has disappeared - except for families in Nigeria.
ISIL combatants seeking an 'exit strategy' from Mideast conflict need positive reinforcement back home, analysts say.
European nation hit by a wave of Islamophobia as many young fighters join ISIL in Syria and Iraq.
Featured
Lack of child protection laws means abandoned and orphaned kids rely heavily on the care of strangers.
At least 25 tax collectors have been killed since 2012 in Mogadishu, a city awash in weapons and abject poverty.
Since she was 16-years-old, Scottish Nationalist Party's Sturgeon has strove for independence from the UK.
Armed group's ransom success with German hostages marks a re-emergence, as authorities investigate ISIL links.
Western nations are moving into the resource-rich country after decades of disinterest, challenging China's interests.