Financial Crisis Inquiry Commission Report Lays Blame Where it Belongs

The bipartisan Financial Crisis Inquiry Commission (FCIC) released its overdue investigation results on the causes of the financial crisis on Jan. 27, nearly six weeks after its mandated due date of Dec. 15. In its media advisory, the FCIC stated the crisis was caused by a mix of lack of government intervention when needed, excessive personal borrowing and risk, and reckless financial dealings by Wall Street and banks.

For a government report the publication, which is available online as well as from the Government Printing Office, is straight forward and pulls no punches. At fewer than 700 pages, the report was approved by the majority of the FCIC's members, and dissenting opinions are included in the first official government report on the crisis. Because the report appears to be honest, fair, and balanced many pundits, politicians, and journalists are having a field day firing at chosen minutia in the report that supports a favorite perspective or creates an eye catching headline.

Conclusions presented by the FCIC were not surprising. Most had been voiced by previous investigations that go as far back as 2008's general investigation of the Fed by the IMF. What is probably the most irritating conclusion is short and to the point, "We conclude there was a systemic breakdown in accountability and ethics." Although the FCIC needed five paragraphs to explain their conclusion, they did not leave out any one the evidence proves should share the blame.

Rumors surrounding the release of the report have been reported as facts. One notable rumor is the report by Huffington Post that anonymous sources say unnamed individuals will be referred to the U.S. and concerned states' attorneys general for criminal and/or civil prosecution. One of the FCIC's mandates is to refer possible illegalities for prosecution; Huffington Post's "report" is one of many potshots fired at the Commission in an apparent effort to direct attention from the message of the report. Other journalists and publishers are obscuring the message, too. The Columbia Journalism Review took time out from fair coverage of the report to sensationalize the placement of articles in other published accounts. It criticizes headlines, story placement, and, the press in general for what it calls, "Mostly lackluster coverage of a lackluster report."

Even the FCIC members who disagreed with full Commission's conclusions used smoke and mirrors missing from the full report. Using the report's conclusions to prove the blame belongs solely on the housing and international cash flow "bubbles," a minority of the appointed members detracted from the unusual honesty of the rest of the report.

The final conclusion can only be that, since almost everyone with a voice opposes and disagrees with the FCIC's explanations and conclusions, the report is probably much more accurate and precise than any reports made by its detractors. To quote The Bard, "The lady doth protest too much, methinks."

Sources:

FCIC full report: http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf

FICI conclusions with links to dissenting opinions: http://www.fcic.gov/report/conclusions

FCIC news release: http://www.fcic.gov/files/news_pdfs/2011-0127-fcic-releases-report.pdf

Huffington Post "non-report": http://www.huffingtonpost.com/2011/01/24/financial-crisis-commissi_2_n_813415.html

Columbia Journalistic Review "non-report" : http://www.cjr.org/the_audit/financial_crisis_inquiry_commi.php