U.S. Bankers Asked To Testify Their Inaction Before The Meltdown

January 14th, 2010 - 7:46 pm ICT by GD  

By Madhuri Dey
usJan 14, (THAINDIAN NEWS) Four major Wall Street bankers have been called upon to justify their actions regarding the global economic crisis that struck sometime around mid-2008. This is the first time that the four executives, all of them from some of the top financial firms of the United States, have been called upon to state reasons of their apparent lack of foreknowledge about the recession, whereas in normal circumstances, they should have known the approximate time of the beginning of the financial meltdown.

The four executives who had been called on by the Financial Crisis Inquiry Commission in Capitol Hill are the Chairman and Chief Executive Officer of the Goldman Sachs Group Incorporated, Lloyd Blankfein, CEO and Chairman of the JP Morgan Chase and Company James Dimon, John Mack, Chairman of Morgan Stanley, and the CEO and President of the Bank of America Brian Moynihan. The inquiry had been long pending, as the Chairman of the Inquiry Commission, Phil Angelides commented, public fury had been growing over the increasing rate of unemployment and foreclosures.

The four executives were asked why they were not able to predict the impending financial meltdown or the extent of it. This was the first hearing of the Commission. The executives defended their actions, saying that although they could see that the market was showing the signs of a depression, it was not possible for them to realize that a complete breakdown was so imminent. Together with the members of the Financial Crisis Inquiry Commission, they attempted to put down a finger on what caused the most major financial disruption since the Great Depression of the 1930s.

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