In his blog The Big Picture, Barry Ritholz posts part III of a series about what really happened in the financial crisis. This latest installment includes a mythbusting list from Jennifer S. Taub, Lecturer and Coordinator of the Business , University of Massachusetts, Amherst. She quotes extensively from the Financial Crisis Inquiry Program at the Isenberg School of ManagementReport, and it is a list well worth reading.
Here an excerpt from her list:
Myth #1: The Financial Crisis Inquiry Commission failed to come to any agreement, as the six Democratic appointees published a Report containing conclusions completely at odds with the views of the four Republican appointees.
Reality #1: No. As Lawrence Baxter commented here, there is accord among nine of the 10 Commissioners on a variety of factors. Indeed, all 10 even agree on a precipitating cause of the crisis. As for the nine Commissioners, the centerpiece of the consensus is that poor risk management at US financial institutions was a chief contributor to the Crisis. As one such example, they all agree that insufficient capital and a reliance on short-term borrowing resulted from risk management failures at financial institutions.