{"id":497697,"date":"2010-03-31T15:00:02","date_gmt":"2010-03-31T19:00:02","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/03\/31\/greenspan-to-testify-on-subprime-mess\/"},"modified":"2010-03-31T15:00:02","modified_gmt":"2010-03-31T19:00:02","slug":"greenspan-to-testify-on-subprime-mess","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/497697","title":{"rendered":"Greenspan to Testify on Subprime Mess"},"content":{"rendered":"

Originally posted on Washington Wire<\/a>.<\/em><\/p>\n

The congressional panel investigating the financial crisis announced the witness list for next week\u0092s much-anticipated three-day hearing focusing on who\u0092s to blame for the subprime lending fiasco.<\/p>\n

Former Federal Reserve<\/strong> Chairman Alan Greenspan<\/strong> highlights the list of witnesses, as expected. He\u0092ll be the first witness to face the Financial Crisis Inquiry Commission<\/strong> on Wednesday — and the only witness from the Fed. He\u0092s likely to be grilled over the central bank\u0092s decision not to tighten up on the loose lending standards that many banks and mortgage companies were employing in the years leading up to the collapse. Defaults on poorly-documented subprime mortgages undermined the value of many mortgage-related securities, and helped trigger the broader financial crisis in 2008.<\/p>\n

Greenspan already has cited the Fed\u0092s decisions on lending standards as his biggest regret from the meltdown. He has said he thought the markets would be sufficiently vigilant to minimize the risk themselves. But the growing practice of securitizing mortgages into increasingly complex instruments apparently diluted accountability among lenders and investors, and encouraged poor risk management.<\/p>\n

Read the rest of this post on the original site.<\/a><\/p>\n

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Originally posted on Washington Wire. The congressional panel investigating the financial crisis announced the witness list for next week\u0092s much-anticipated three-day hearing focusing on who\u0092s to blame for the subprime lending fiasco. Former Federal Reserve Chairman Alan Greenspan highlights the list of witnesses, as expected. He\u0092ll be the first witness to face the Financial Crisis […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-497697","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/497697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=497697"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/497697\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=497697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=497697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=497697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}