[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
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Featured
Assam officials upset that WWII-era Stillwell Road won't be used in transnational highway linking four Asian nations.
Informal health centres are treating thousands of Syrian refugees in Turkey, easing the pressure on local hospitals.
Indonesian and Malaysian authorities are keeping a close eye on local supporters of the hard-line Middle East group.
Wastewater ponds dot the landscape in US states that produce gas; environmentalists say they’re a growing threat.
China President Xi Jinping's Mongolia visit brings accords in the areas of culture, energy, mining and infrastructure.
join our mailing list