FCIC – Hearings

  • 2008 1023 – GOV (House) – The Financial Crisis and the Role of Federal Regulators – [PDF-117p, VIDEO-CSPAN]
    • Greenspan, Cox, John Show

2009

  • 2009 1117 – FCIC – Hearing – Financial Crisis Inquiry Commission – Timothy Geithner, Secretary of the Treasury – Closed Session  —  [BonkNote]
    • [PDF-50p] 
    • AUDIO – [2009-11-17 FCIC staff audio tape of interview with Timothy Geithner, Department of the Treasury.mp3-48:48]
    • (p17) – Secretary Tim GEITHNER: — if the monoline insurance companies and AIG were not allowed to — were not able to write huge amounts of protection with no capital to back it up — when I said about capital, I meant among the regulated in the areas — if they had not been able to overwrite those commitments, it would have been a less serious crisis — a much less serious crisis.
      • And that’s just a more simple thing. It’s not about derivatives so much as being no capital to back a commitment. It doesn’t need a fancy — it’s not a fancy product or even so much oversight of derivatives.
      • It’s just the regulatory authority responsible for those institutions did not force them to hold capital against their commitments.
  • 2009 1117 – FCIC – Hearing – Financial Crisis Inquiry Commission Closed Session – Ben Bernanke, Chairman of the Federal Reserve

2010

  • 2010 0114 – FCIC – Hearing – Causes of 2008 Financial Collapse, Day 2 – [PDF-169p]
    • Federal Officials – [VIDEO-CSPAN]
      • Statement of Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation : On the Causes and Current State of the Financial Crisis before the Financial Crisis Inquiry Commission – [link-54p]
    • State and Local Officials – [VIDEO-CSPAN]
  • 2010 0407 – FCIC – Hearing – 2008 Financial Crisis and Investment Banks, Day 2 – [PDF-371p]
    • Panel 1 (Hank Paulson) – [PDF-p, VIDEO-CSPAN]
  • 2010 0408 – FCIC – Hearing – Financial Crisis Inquiry Commission
    • [PDF-p, VIDEO-CSPAN]
    • Citigroup – Robert E. Rubin, Chair, Executive Committee
    • Citigroup – Charles Prince, Chairman and CEO
  • 2010 0505 – FCIC – Hearing – The Shadow Banking System – [PDF-369p]
    •  [VIDEO-CSPAN]
  • 2010 0506 – FCIC – Hearing – 2008 Financial Crisis and Investment Banks, Day 2 – The Shadow Banking System – [PDF-329p]
    • Session 1 (Hank Paulson) – [VIDEO-CSPAN]
    • Session 2 (Tim Geithner) – [VIDEO-CSPAN]
      • 2010 0810 – FCIC – Hearing – Letter – To Tim Geithner from FCIC – Thank you for testifying on May 6, 2010 in front of the Financial Crisis Inquiry Commission and agreeing to provide additional assistance.
        • Toward that end, please provide written responses to the following additional questions and any additional information by August 24, 2010.1 – 10p
        • Geithner’s Response – <WishList>
    • Session 3 () –  
  • 2010 0602 – FCIC – Hearing – Credibility of Credit Ratings, the Investment Decisions Made Based on Those Ratings, and the Financial Crisis – [PDF-510p]
    • Panel 1 – [VIDEO-CSPAN] 
    • Panel 2 – [VIDEO-CSPAN]
  • 2010 0701 – FCIC – Hearing – 2008 Financial Crisis and Derivatives, Day 2 – [PDF-313p]
    • Executives Panel – [VIDEO-CSPAN]
      • AIG and Goldman Sachs Executives
      • AIG: Bensinger, Forster, Habayeb
        • 2010 0701 – FCIC – Hearing – Testimony of Andrew Forster Before the Financial Crisis Inquiry Commission (FCIC) – 4p
      • Goldman Sachs: Viniar, David Lehman
    • Regulators Panel – [VIDEO-CSPAN]
      • Eric Dinallo (NY Insurance Regulator), Gary Gensler (CFRC), Clarence Lee (OTS)
      • 21:00 – How come we didn’t see this? – Bill Thomas (FCIC), Gensler (CFTC)
      • 37- Dinallo, Born (FCIC) –
        • Born – Some have suggested that the real problem at AIG related to the Securities Lending program.
        • 41:00 – Dinallo – AIG Companies were fully solvent, wasn’t the reason for the Bailout
        • Run on AIG Life, general economy, RMBS – Doubling down on real estate
        • Dinallo – Asset Liability Matching – Statutory Account vs Mark to Market
        • 44:00 –  Dinallo – Run, consumer lack of confidence in insurance products, liquidity problem
      • 53:00 – Wallison, Dinnallo – AIG company could do CDS because of AIG Life Rating,  Big Miss, Rating Company, 
      • 1:22 – Clarence Lee (Retired ), Keith Hennessey (FCIC)
        • Did they understand these risks? Cassano, etc
        • Probability, demands, liqudity,  understood the risks… low probability… willing to take them
        • 1:27 – Eric Dinallo – Collateral, no reserves, liquidity miscalculation, ratings downgrades
        • 1:31 – Keith Hennesey (FCIC) – AIG FP “got away” with it because they were part of the larger AIG Insurance Company.  Dinallo – Yes, I have written that. Dilapidated house example.  not really insurance
      • 1:33 – Hennessey – What would have happened if the Fed had not Bailed out AIG?
        • 1:35 – Dinallo – History, Geitner, Full blown Credit crisis, AIG Insurance Companies generally good.  AIG Asia Run – Singapore…. Could have undermined the 3rd Leg (Insurance)
      • 1:37 – Douglas J. Holtz-Eakin (FCIC) – How would this have affected Construction Bonds?
        • 1:37 – Dinallo – Problem for Insurance Companies is non-renewal of premiums.
      • 1:41 – Gensler – Mispriced.   Definition.  Underestimating and lack of preparation for bad things happening.  “underestimated risk” . Liqudity Risk, Correlation Risk, Tail Risk, Black Swan?  Credit Risk, “house of cards built on a housing bubble”, confidence was shot, if I just had more time, nobody will hand you more chips,
      • 1:47 – Peter Wallison (FCIC) – Nobody saw this coming, not even Warren Buffet. 
      • 1:57 – Dinallo – 4 buckets – Derivatives are based on those 4 buckets… there is no 5th bucket. 36 to 1 leverage. no rules
      • 1:36 – Born/ Dinallo – Deregulation, Regulators, Capital Requirements, CFMA – Told Wall Street you don’t have to reserve, unregulated, Regulation vs Enforcement, 
  • 2010 0901 – FCIC – Hearing – “Too Big to Fail”: Expectations and Impact of Extraordinary Government Intervention and The Role of Systemic Risk in the Financial Crisis – [PDF-274p]
  • 2010 0902 – FCIC – Hearing – “Too Big to Fail”: Expectations and Impact of Extraordinary Government Intervention and The Role of Systemic Risk in the Financial Crisis – [PDF-196p]

2011

  • Financial Crisis Inquiry Commission Final Report