25 People Responsible for the Crisis
Greenspan, King, and Clinton all played a role, the Guardian writes
By Nick McMaster, Newser Staff
Posted Jan 26, 2009 3:25 PM CST
A portrait of Federal Reserve Chairman Alan Greenspan by artist Geoffrey Raymond is photographed outside the New York Stock Exchange, Friday, Oct. 24, 2008 in New York.   (AP Photo/Mary Altaffer)

(Newser) – The current recession is a wholly man-made phenomenon, the Guardian reminds us, and they’ve got the names of those responsible. Here are four from their list of 25:

  • Alan Greenspan: Fed chair for 19 years, Greenspan kept interest rates low as the housing bubble developed, backed subprime lending and variable interest rate mortgages, and strongly defended the use of credit derivatives.

  • Mervyn King: Governor of the Bank of England since 2003, King played down the signs of a brewing financial meltdown, declining to cut rates early on. He also refused to inject cash into the financial system, citing “moral hazard.”
  • Bill Clinton: The president strengthened the 1977 Community Reinvestment Act, making subprime lending easier. He also repealed the Glass-Steagall act, allowing deposit-based and investment banks to merge.
  • Kathleen Corbet: Under her tenure as CEO, Standard & Poor's pumped out AAA credit ratings for collateralized debt obligations, the securities backed by mortgages—often subprime—that turned into today’s “toxic assets.”
Click the link below for the complete list.

View 3 more images
More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
You Might Like
Showing 3 of 20 comments
Jan 30, 2009 4:56 AM CST
Full and open governmental transparency .....now that would cause a sh** storm......on both sides, and a few sides we aren't even aware of.....The real area 51, black ops assassin squads in south America and other such things...
Jan 27, 2009 9:44 PM CST
The HG channels showing all the Flip This House and How Much is My House Worth crap turned what used to be a home where you lived into a bank account. Everyone bouoght into it... but that doesn't cover the everyday person who has lived in their home for 23 years and is in danger of losing it not because of the size of the mortgage but because of the economy hemoraging jobs and prices for everyday living going up. Not every person who is late on a mortgage is to blame and deserve aid.
Jan 27, 2009 6:53 AM CST
Funny, it's all Clinton's fault for signing Gramm -Leach-Bliley which repealed Glass-Steagal however all three authors of the bill were Republicans and the Republicans controlled both houses of congress with the 60 votes needed to override a veto. Yeah it's all Bill Clinton's fault.