The FCIC's Report On The Financial Crisis Is Out And It's HARSH

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The FCIC’s report on the causes of the financial crisis is out and while we haven’t read it yet, looking over the Table of Contents, it’s clear that the report’s authors slam the finance industry. Chapter 1 is ominously titled, “Before our very eyes.”

Shadow banking, securitization and derivatives, deregulation, and subprime lending are the factors that the report says “set the stage.”

And then come sections called, “The Mortgage Machine,” “The CDO Machine,” “All in,” “The Madness,” and “The Bust.”

So that should give you a very general idea of what’s in the report. We’re reading it now and will be reporting on it for at least the next few hours, so stay tuned.

Here’s what we’ve found so far:

A Goldman Sachs Partner told her subordinates to package and hide the crap they couldn’t sell in CDOs — and Fabrice Tourre told his unit to sell them to the dumb money. Click here to read >

When the economy was about to collapse, Morgan Stanley’s head of due diligence was living in Florida. Click here to read >

Dick Fuld used to call Ken Lewis at home so much, Ken Lewis’ wife had to get involved (Fuld desperately wanted Lewis to buy Lehman). Click here to read >

In the days before the Lehman implosion the Fed was pretty much taking advice from anyone with a background in finance. Click here to read >

The CEO of Fannie Mae told his CRO to stop “venting” after the CRO told him the firm couldn’t handle more risk. Click here to read >

In 2005, a Bear Stearns analyst was so excited about housing, AIG employees thought he was on drugs. Click here to read >

Click here to download the full report.

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