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Will the Financial Crisis Inquiry Commission ‘Name Names’?

Posted by Larry Doyle on January 26, 2011 9:25 AM |

Tomorrow the Financial Crisis Inquiry Commission will release its widely anticipated report investigating the causes of our financial crisis. While many on Wall Street would like to promote the fact that the financial crisis was nothing more than ‘the perfect storm,’ we know that is not the case. The New York Times has received a preview of the FCIC’s report and highlights the fact that the Financial Crisis Was Avoidable, Inquiry Finds,

The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a federal inquiry.

The commission that investigated the crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors and risky bets on securities backed by the loans.

“The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done,” the panel wrote in the report’s conclusions, which were read by The New York Times. “If we accept this notion, it will happen again.”

While the panel, the Financial Crisis Inquiry Commission, accuses several financial institutions of greed, ineptitude or both, some of its gravest conclusions concern government failings, with embarrassing implications for both parties.

I look forward to the FCIC’s report. Indications going around the blogosphere are that the commission may recommend that certain activities went beyond pure greed and incompetence. To that end, though, the commission owes our nation specifics in terms of names. Not the names of institutions. Not the names of agencies. Not the names of financial firms. The commission owes our nation the names of specific individuals involved in the activities and failures which may require indictments and prosecution.

Will the FCIC name names? Not what. Who!!

So many Americans continue to suffer from the pain and anguish inflcted by the greed and incompetence embedded in the Wall Street-Washington incestuous relationship.

America deserves nothing less than the total truth, real transparency, and unbridled integrity from the Financial Crisis Inquiry Commission.

I repeat, not merely the “what” BUT much more importantly the “who”.

Will the FCIC ‘name names?’

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own and not those of Greenwich Investment Management. As President of Greenwich Investment Management, an SEC regulated privately held registered investment adviser, I am merely a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • BMB

    Followed by perp walks?

  • Due Process

    Everybody is entitled to due process but this story is enlightening and if true, will be interesting to see how it is handled. If the details in this story actually happened at Bear, did similar things happen at other brokers/banks? Was there a conspiracy? This is a MUST READ.

    E-Mails Suggest Bear Stearns Cheated Clients Out of Billions

    • coe

      This is a blistering story – on several levels – start with the effort to suppress by JPMorgan, who inherited the mess after their back room sweetheart deal for Bear – reminds me of the old story of how the hunter is captured by the game…but when you drill down to the details of the allegations – wow! If the activities are remotely true it is yet another devastating blow – to the healing process in the capital markets, and frankly, to the rebirth of the benefits provided through the liquidity created in the securitization markets – if I am a European/Asian investor, does this story incent me to buy US mortgage securities – I don’t think so….if I am a rating agency or a regulator, how do I diligence the pools that fall within my purview – with a wary eye at the least? and how do the firms who currently employ all of the principal players from the Bear mortgage factory – including the EMC gang, respond – we are talking about Bank of America, Ally, Goldman among others – all central ongoing players in the mortgage origination, servicing and distribution process…let’s get real – JP grabbed Bear for a song with US government (i.e. taxpayer) assistance; Bank of America, who had plenty of their own self-inflicted wounds, scooped up Countrywide, where the stories around their cultural imperatives in the mortgage channel are nothing to be proud of; Ally is the rebranded GMAC mortgage, still one of the Top Ten originators in the country – but with their own well-chronicled troubles; and Goldman, well, the more we learn, the less honorable that firm seems to behave…I’m pretty sure if there was a forensic investigation across the board, this Bear story would not likely stand alone. But, even to this jaded eye, these allegations are a powderkeg!

      I’m with you, LD, truth, transparency, and integrity…innocent until proven guilty – yes…but go after the facts hard, and name names!

  • Peter

    That story about the crowd at Bear Stearns is amazing one hand but not all that surprising on the other. Let’s hope the truth comes out.

  • please investigate the biggest story of them all

    the wall Street Counterfeiting story and the Government Sting

    http://www.cmkxsting.com

    richard
    SiriusNews

  • Willie Sutton

    “Cuz that’s where the money is…!!

    Willie Sutton in the middle part of the last century and banksters on Wall Street in the middle of the past decade.

    Willie had more honor.

  • LD ..MUST READ

    Financial Crisis Inquiry Commission Report

    I will comment further on this report but in my opinion and based upon a cursory review, this report comes so close yet remains so far from the total truth, transparency, and integrity America truly wants and needs.

    The FCIC highlights the fact that the FederaL Reserve clearly failed. Alan Greenspan’s legacy as a failed Fed chair is now forever solidified.

    The report highlights the following on page 23,

    We do place special responsibility with the public leaders charged with protecting our financial system, those entrusted to run our regulatory agencies, and the chief executives of companies whose failures drove us to crisis. These individuals sought and accepted positions of significant responsibility and obligation. Tone at the top does matter and, in this instance, we were let down. No one said “no.”

    Righjt here, the FCIC should have had the balls to name names ….and a LOT of them.

    The FCIC does highlight the failures of self-regulation but only once references Wall Street’s self-regulator FINRA.

    So close…so far!!

  • kbbus

    If the FCIC wants justice, THIS is the poster boy for Wall Street misbehaviour.
    CMKX – how our own governement is complicit with Wall Street criminals.
    1. CMKX is the most naked shorted stock in history with trillions of counterfeit shares being issued
    2. CMKX had days where more shares of it were sold than the rest of the market COMBINED
    3. CMKX accomplished the largest physical cert pull in history. PROOF of the naked short is on record.
    4. CMKX guided by Robert Mahue traps the greedy banksters, SEC, DTCC, and criminals – a settlement is signed and paid off. Proof exists of this trust.
    5. CMKX trust funds seized by US Goverment to help keep failing monetary policy and overspending budget afloat
    6. CMKX has over 50,000 proven shareholders who deserve their property returned to them.
    7. CMKX files the largest civil suit in American history
    8. CMKX has never received the publicity this case deserves in the main stream media.
    9. CMKX is still stonewalled on payments – several administrations are guilty.

    Hopefully someday, someone will show the tenacity and courage to use this case to bring the guilty to justice and pay the shareholders.

  • Julie Kinnear

    It clearly shows that the regulation was not sufficient at all. I can’t help but think about the financial crisis in Greece which could be prevented had the EU officials revealed their information about the state of the country’s debt.






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