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FCIC Synopsis: Not Much Has Changed – Banks are Bigger Than Ever

January 29, 2011

In 2007 I lost 60% of my business within six weeks. Something was afoot. I started poking around and then one day listened to an interview on NPR with Pulitzer prize winning journalist, Gretchen Morgenson. I learned about what was going on in the financial markets and how the housing market with massive sub-prime mortgages were on a collision course for disaster. I listened to several more interviews over the next year with Morgenson and knew we were in deep trouble. All the nonsense with credit default swaps came to light. Now we have the FCIC report released this last week and all that she said along with others, like Charles Ferguson of Inside Job, and Frontline and 60 Minutes revealed the deep corruption in our system. Today, Morgenson, comments on the FCIC report in the NY Times:

The report still makes for compelling reading because so little has changed as a result of the debacle, in both banking and in its regulation. Providing chapter and verse, for example, on the bumbling and siloed management at the nation’s largest banks is enlightening, in that many of these institutions are even bigger than they were before. With too-big-to-fail institutions now larger than ever, we are almost certain to go through another episode like 2008 in the not-too-distant future.

For those who might find the report’s 633 pages a bit daunting for a weekend read, we offer a Cliffs Notes version.

Go here to read her entire commentary

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