Saturday, October 25, 2008

The elephant (and donkey) in the room

Congress has held further hearings into the causes of the current financial crisis. The latest to be hauled in front of either Senate or House panels were the heads of the ratings agencies, and the former head of the Federal Reserve, Alan Greenspan (along with the former Treasury Secretary John Snow, and the current SEC Chairman Christopher Cox).

'Crashing the party' noted that the ratings agencies should figure among those with some responsibility for the crisis. Their turn came when the House Oversight and Government Reform Committee held a hearing to grill the heads of Moody's, Standard & Poor's, and Fitch Ratings.

Greenspan was hauled before the House Oversight Committee, where his reception was significantly less deferential than in past times...

So, Congress has held a number of "show trials" to grill many of those that have had a part in the run up to the current crisis... However, they have not yet shown a willingness to take a look at their own (significant) role in this crisis... This bunch of 'Louis Renaults' are "shocked, shocked" at what happened and are busy rounding up the usual suspects...

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