Financial crisis commission blames Wall Street

The World

Who or what was responsible for the worst economic crisis since the 1920s? And could it have been prevented? That is what the Financial Crisis Inquiry Commission set to find out when they interviewed over 700 people. Today they release their 576 page report. Michael Hudson, reporter for the Center for Public Integrity and the author of “The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America and Spawned a Global Crisis” says Wall Street greed and lack of government regulation were the biggest causes for the crisis.

In fact, housing lenders, Fannie Mae and Freddie Mac were not the main culprits in the crisis. Hudson explains that the evidence is overwhelming that loans bankrolled by Wall Street were much more likely to go into serious delinquency than those issued by Fannie and Freddie. “Although they did a lot of damage to homeowners and tax payers, they weren’t the ones who created the mess, they jumped in late in the game and made it worse,” says Hudson.

Invest in independent global news

The World is an independent newsroom. We’re not funded by billionaires; instead, we rely on readers and listeners like you. As a listener, you’re a crucial part of our team and our global community. Your support is vital to running our nonprofit newsroom, and we can’t do this work without you. Will you support The World with a gift today? Donations made between now and Dec. 31 will be matched 1:1. Thanks for investing in our work!