Pecora Commission

In a piece called "Wall Street: Not Guilty," financial columnist Roger Lowenstein attempts to defend Wall Street against allegations that it's a viper's nest of rampant criminality. His mischaracterization, mockery, and vague suggestions of McCarthyism are strident, flat, and fail to get the job done. But Lowenstein's piece is well worth reading, if only as a case study in the moral and cognitive blindness that's reached epidemic proportions in influential Washington and Wall Street circles.

Lowenstein shows us how people who are undoubtedly thoughtful and ethically-minded in their personal lives can lose their way when confronted with complex moral and legal issues, especially ones involving people they know personally. And his misdirection and vituperation suggests how unsettled they become when their worldview is challenged.

It's a shame. The analytical and moral flaws in Lowenstein's piece obscure some of the very sound points he makes about the wrongheadedness of our country's financial culture, a topic that deserves more thoughtful discussion. Without a clear rebuttal, this wrongheaded view is likely to become tomorrow's conventional wisdom.

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Alan Greenspan's testimony before the Angelides Commission certainly provided a target-rich environment, as they say in the Pentagon. Unfortunately the Commission missed all its targets, leaving the American public as undefended from financial depradation and ruin as it was before the hearing began. It was almost anticlimactic when the power failed during the final fifteen minutes of Greenspan's appearance. The light had left the room long before then. more »

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The Financial Crisis Inquiry Commission hearings began belatedly this morning. Carrying a structure of decision-making that appears to be designed to make it hard to get things done, Chairman Phil Angelides has a gargantuan task before him. more »

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This is the first article in a three-part series on the FCIC. The article originally appeared at the New Deal 2.0 project, where I am a Braintruster.

The Financial Crisis Inquiry Commission (FCIC), which started work last week, will have a significant impact on the health of our democracy. more »

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Word is circulating in Washington that members for the Financial Crisis Inquiry Commission will be named this week. more »

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