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Posted at 9:58 AM ET, 01/27/2011

FCIC Report: Help us investigate it

By Andrea Caumont and Sarah Halzack

This morning, the Financial Crisis Inquiry Commission released a report that shows the findings of their months-long probe of what happened during the financial crisis of 2008 and what its causes were.

Post reporters Zach Goldfarb and Brady Dennis wrote, "While the report is scathing in its review of Wall Street, what's notable is how hard it comes down on federal regulators for missing warning signs, fighting turf wars, and being short-sighted overall."

Meanwhile, reader Magellan1 notes, "I find it interesting that everyone is to blame, except the politicians."

Weigh in and tell us what you think.


By Andrea Caumont and Sarah Halzack  | January 27, 2011; 9:58 AM ET
 
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Comments

Only the Wallison dissent echoes the Republican Congressional mantra about Fannie and Freddie. The dissent of the other Republican members is a more nuanced version of the Democratic majority opinion, focusing on what they call "essential" factors and seeking to explain what was different in the US when other countries' banks and housing markets also failed.

My own view is that Wall Street has turned into a gambling casino and fraud factory. The banking industry now makes much of its money and justifies its big executive bonuses by screwing its customers and investors. The culture spread internationally, and the regulators didn't interfere.

I also strongly suspect that the toxic mortgages were predatory and deliberately designed to go into default. The problem was that the system had so much leverage and so much side-bet gambling that once the defaults started the system couldn't handle it and the whole thing snowballed.

The entire problem was cultural. Instead of trying to lend prudently, the banking industry set traps to screw unsuspecting borrowers. Instead of providing a prudent financial product, the securitizers were out to screw bond investors. What needs to happen is a major injection of transparency, honesty, and prudence. The fraud and gambling need to be rooted out. Finance needs to become as exciting as watching grass grow.

Posted by: StanKlein | January 27, 2011 9:18 PM | Report abuse

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