Financial Crisis Inquiry Report: Crisis Was Avoidable

Statement by Michael D. Calhoun, President, Center for Responsible Lending

WASHINGTON, Jan. 27, 2011 /PRNewswire-USNewswire/ -- The Financial Crisis Inquiry report rejects the notion that the financial crisis was inevitable. Instead, based on extensive evidence and 19 days of public hearings, the report points squarely at preventable actions and inactions by the "captains of finance and the public stewards of our financial system." Aided by oversight that was weak and permissive, the reckless practices of Wall Street dragged the entire economy down an irresponsible path, though other roads could have been taken.

The good news is that the financial reform bill passed by Congress last summer provides strong tools to prevent another financial crisis — provided that these reforms receive sufficient funding and the authority to watch over big financial firms. To achieve full economic recovery, Congress must also find stronger and more effective ways to stem the foreclosure crisis.

CRL has more detailed information on its website regarding the causes of the financial crisis, including these pages:

"Wall Street, Not Fannie Mae and Freddie Mac, Led the Toxic Mortgage Market"

http://www.responsiblelending.org/mortgage-lending/policy-legislation/congress/wall-street-not-fannie-mae.html

"CRA is Not to Blame for the Mortgage Meltdown"

http://www.responsiblelending.org/mortgage-lending/policy-legislation/congress/cra-is-not-to-blame-for-blame-for-the-mortgage-meltdown.html

About the Center for Responsible Lending

The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.

SOURCE Center for Responsible Lending