Friday, January 28, 2011

US Financial Crisis Inquiry Commission

Here is the report of the inquiry commission set up by the US government to look into the causes of the financial crisis of 2008.
http://www.bbc.co.uk/news/business-12297002


It concluded that the crisis was caused by a number of factors:
  • Failures in financial regulation, including the Federal Reserve's failure "to stem the tide of toxic mortgages"
  • A breakdown in corporate governance that led to "reckless" actions and excessive risk taking by financial institutions
  • Households taking on too much debt
  • A lack of understanding of the financial system on the part of policymakers
  • Fundamental breaches in accountability and ethics "at all levels".
My comments
It is frank and direct to the point - no hiding of the truth.