We already knew this, but the U.S. Financial Crisis Inquiry Commission has confirmed the fact that the financial meltdown that spurred the largest economic downturn since the Great Depression was avoidable and only occurred because no one involved understood the risks they were taking.
Regulators, politicians and bankers were to blame for the 2008 US financial meltdown, a report has claimed.
The US Financial Crisis Inquiry Commission, tasked with establishing the causes of the crisis, said it was “avoidable”.
Its report highlighted excessive risk-taking by banks and neglect by financial regulators.
Only the six Democrat members of the 10-strong commission, set up in May 2009, endorsed the report’s findings.
“The crisis was the result of human action and inaction, not of Mother Nature or models gone haywire,” the report said.
“The captains of finance and the public stewards of our financial system ignored warnings and failed to question, understand and manage evolving risks within a system essential to the well-being of the American public.
“Theirs was a big miss, not a stumble.”
The best part will be when nobody learns anything from this and it all happens again in like five years.
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Jared Wade is co-editor of Risk Management Monitor and senior editor of Risk Management magazine, where he has worked since 2002. You can follow him on Twitter @RiskMgmt and find more of his writing at JaredWade.com.
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Exactly, i am totally agree with this….that’s why i am doing financial risk management course, because i know there will be much jobs in the future for Financial Risk Manager.
“The crisis was the result of human action and inaction, not of Mother Nature or models gone haywire,”.
It bears a striking resemblance with the financial crisis in Greece which also was a result of the inability of the EU officials to disclose the information about the country’s uncontrollable spending and ineffective financial regulation. I think this is where we need to start in order to prevent another downturn like this.