On January 27, the Financial Crisis Inquiry Commission issued a report on the causes of the financial and economic crisis, concluding that the financial crisis was avoidable and was due to: (i) widespread failures in financial regulation and supervision, (ii) failures of corporate governance and risk management at many systemically important financial institutions, (iii) a combination of excessive borrowing, risky investments, and lack of transparency, (iv) a lack of preparation by the government, (v) a systemic breakdown in accountability and ethics, (vi) lowered mortgage-lending standards, (vii) lack of oversight of over-the-counter derivatives, and (viii) failures of rating agencies. FCIC Release. FCIC Report.
Financial Crisis Inquiry Commission
Bair, Bernanke Testimony on “Too Big to Fail”
On September 2, FDIC Chairman Bair and Fed Chairman Bernanke testified before the Financial Crisis Inquiry Commission on systemically important institutions and the “too big to fail” issue. Bair addressed how systemic risks can be mitigated using the tools provided under the Dodd-Frank Act. Bair Testimony. Bernanke Testimony.
Financial Crisis Inquiry Commission
On January 13 and 14, the Financial Crisis Inquiry Commission, which was established by Congress earlier this year “to examine the causes, domestic and global, of the current financial and economic crisis in the United States”, conducted hearings with testimony from executives of financial institutions, market participants and federal, state and local officials. Statements by Participants and Video of the Hearings.