The Financial Crisis Inquiry Commission has concluded that the 2008 financial crisis in the U.S. was caused by a combination of corporate errors, regulatory failure and excessive risk-taking by Wall Street firms, the New York Times reported online Tuesday. The bipartisan commission, headed by former California treasurer Phil Angelides, spreads blame across agencies and officials in Bill Clinton's and George W. Bush's administrations for loosening regulation and inadequately responding to the crisis. Additionally, according to the Times, the report says government-sponsored mortgage financiers Fannie Mae (FNMA) and Freddie Mac (FMCC) "contributed to the crisis but were not a primary cause." The Fed's decision to keep rates low following the recession of 2001 "created increased risks," the report says, but it wasn't a prime cause, either. Of the commission's 10 members, only the six appointed by Democrats endorsed the final report, the Times said.

Source: New York Times May 31, 2024 23:36 UTC