Banking crisis 2007/2008
US financial crisis was 'avoidable'

The blame game at full force along party lines ... the President's Commission reports back. This is from January 2011, and for all practical purposes now almost totally forgotten and only used for partisan posturing

COMMENTARY

Peter Burgess

US financial crisis was 'avoidable'

Wall Street executives, US regulatory agencies, and the US federal reserve are all being blamed in a new report into the causes of the 2008 financial meltdown.

The country's presidential commission also concluded the financial meltdown could have been avoided altogether. But even as it wraps up its two year inquiry, the 10-member panel remains sharply divided over the causes.

The report reflects the views of six Democrats - while the four Republicans have written dissenting opinions.

It also lays much of the blame on what it says are the 'reckless' practices of financial firms like Fannie Mae, AIG and Bear Stearns. It says poor controls led to excessive borrowing and risky investments on mortgages.

It also faults 'weak' government regulators like the Securities and Exchange Commission and US Central Bank - for failing to rein in the banks they supervised.

Singled out is former Federal Reserve Chairman Alan Greenspan - for backing de-regulation practies that accelerated the sub-prime mortgage crisis.

Lobbyists are also being heavily blamed.

Al Jazeera's Nick Spicer reports.