Bear Stearns Cos.’s rescue by JPMorgan Chase & Co. , facilitated with government guarantees, was the “original sin” made by regulators in 2008 because it signaled that other firms would get aid, said Peter Wallison of the Financial Crisis Inquiry Commission.
The Justice Department decision to sue Standard & Poor’s has investors asking why Moody’s Investors Service and Fitch Ratings weren’t targeted for awarding the same top grades to troubled mortgage bonds and other debt securities.
If you and I were in a bar together, and you suffered a nasty bump on your head when I accidentally whacked you with a pool cue, there probably would be no disputing that my action caused your harm. But for my careless swing of the stick, the injury wouldn’t have happened.
When Deutsche Bank AG foreclosed on a Las Vegas parcel in the depths of the 2008 crisis, it decided to double down. The bank spent $4 billion on a hotel and casino with private terraces, high-end restaurants and a multi-level nightclub to create one of the Strip’s hottest destinations.
With the ink barely dry on the Financial Crisis Inquiry Commission ’s assessment of the 2008 market meltdown, the group is turning to other pursuits: infighting and preparing for congressional investigations.