Financial Crisis Inquiry Commission Report Released, No Banker Prosecutions Follow

The Financial Crisis Inquiry Commission (FCIC), established in 2010 and led by Phil Angelides, released its final report concluding the 2008 financial crisis was caused by a “systemic breakdown in accountability and ethics” on the part of corporate executives. The commission was explicitly modeled after the Pecora Commission, which investigated the 1929 crash, and held public hearings with major banking CEOs including Lloyd Blankfein, Jamie Dimon, and others who had testified about TARP bailouts. However, the FCIC investigation proved to be the opposite of its 1930s predecessor. While the Pecora Commission exhaustively subpoenaed everyone involved, sifted through bankers’ personal records, established motives, and ferreted out discrepancies with prosecutorial thoroughness that forced resignations and led to criminal referrals, the FCIC conducted superficial hearings that kept “the circumstances of the crisis obscure, while preventing the prosecution of those responsible.” Despite documenting widespread fraud, predatory lending, conflicts of interest, and market manipulation that destroyed the global economy, no major figure from either government or the big banks was prosecuted in connection with the financial meltdown. The contrast is stark: Ferdinand Pecora’s 1933-34 investigation led to the resignation and disgrace of National City Bank’s Charles Mitchell and Chase Bank’s Albert Wiggin, public humiliation of J.P. Morgan Jr., and landmark legislation (Glass-Steagall, Securities Acts, SEC creation). The 2008 crisis response produced no executive accountability, no criminal prosecutions, taxpayer-funded bailouts, and the Dodd-Frank Act—tepid reforms systematically weakened through regulatory capture. This represents the complete erosion of financial accountability over 75 years.