U.S. Senate Releases Financial Crisis Report

Yesterday, the United States Senate Subcommittee on Investigations released its report covering the events leading to the financial crisis of 2008. The Subcommittee began its investigation in November 2008 and held several high-profile hearings in April 2010.  The lengthy report includes an analysis into all of the major players involved in the crisis – Mortgage Lenders, Investment Banks, Regulators and Credit Rating Agencies. What is notable about the report is the fact that it received full, bipartisan support unlike the report issued recently by the Financial Crisis Inquiry Commission. In addition, the report is clear and specific in its recommendations.  As noted in the following excerpt, the focus of the report is to prevent a repeat occurrence of a painful shock that could have been averted.

Nearly three years later, the U.S. economy has yet to recover from the damage caused by the 2008 financial crisis.  This Report is intended to help analysts, market participants, policymakers, and the public gain a deeper understanding of the origins of the crisis and take the steps needed to prevent excessive risk taking and conflicts of interest from causing similar damage in the future.