'Today's Hearings Are Not Enough'
Today, Accountable America's Tom Matzzie called for more hearings and called on the FCIC to subpoena former SEC head Christopher Cox. Matzzie:
It is good to see the Financial Crisis Inquiry Commission finally call more witnesses including whistleblowers and Alan Greenspan. It is clear that Greenspan’s blind faith in deregulated rules was a factor causing the entire financial crisis. Greenspan admitted today that as early as 1998 the Federal Reserve was aware of brewing problems—yet Greenspan failed to act repeatedly.
Former SEC Chair Christopher Cox was Greenspan’s twin in the lead up to the crisis. Future hearings should focus on Cox. Mounting evidence implicates Cox’ failures particularly around Lehman Brothers. Cox hobbled the SEC just like Greenspan kept the Federal Reserve from taking action. The SEC under Cox was supervising Lehman in 2007 and 2008 when things spun out of control. The Commission needs to get to the bottom of this. Subpoena Chris Cox if he won’t appear.
Financial Reform should take note of the failures of regulators like Cox and Greenspan and write unmerciful rules to protect consumers. We need a tough cop on the beat.
Today’s hearings are not enough. There must be more hearings, more transparency into the investigations, subpoenas and, yes, criminal referrals. It is time for the Commission to get serious and if certain commissioners are obstructing the work they should be held publicly accountable. No more games—only action.
It's time for the FCIC to hold more hearings, issue subpoenas, get to the bottom of what happened and hold people accountable.