Overview of the FCIC (Financial Crisis Inquiry Commission)

The Financial Crisis Inquiry Commission or FCIC is a commission that was developed by the Federal Government after the financial crisis of 2007 and 2008. This commission was designed to investigate what went wrong and try to provide some insight into the financial crisis. Here are the basics of the FCIC and what it does.

Financial Crisis Inquiry Commission

This commission was created as a nonpartisan group that will look into the financial crisis of the United States economy. The government appointed six Democrats and four Republicans to be on the committee. The individuals that make up the committee are prominent in the business and financial world. This commission also goes by several other nicknames. Some people work for to it as the Angelides Commission because the chairman of the commission is Phil Angelides. It is also referred to as the New Pecora Commission, named after the Pecora Commission that looked at because of the Great Depression in the past. This commission was created on May 20, 2009 when President Barack Obama signed Fraud Enforcement and Recovery Act of 2009. According to the rules, no member of Congress or any other government employee can be included in the commission. 

Purpose

The major purpose behind the committee was to investigate the causes of the financial disaster that took place in the United States. The committee was designed to look at each sector of the industry that failed and try to determine why it happened. They were created to look at every industry individually and come up with the individual reasons behind the collapse. 

One of the responsibilities of the commission is to look at fraud and abuse in the financial sector. Much of the financial collapse is related to the banking industry and specifically mortgage lending. The commission is supposed to look at these details and determine exactly what banks and mortgage lenders were doing wrong. The committee is also supposed to look at the credit rating system and how it is used in lending. 

The committee is also charged with the responsibility of looking at questionable investments that are unregulated such as derivatives. They will also be taking a look at the regulatory structure of the financial industry and they will try to determine what else can be done to prevent the problems in the future. 

Power

In order to accomplish these purposes, the FCIC was given a certain amount of power by the federal government. The FCIC can hold hearings and request certain information from businesses as they need it. They can take testimony, receive evidence, and require certain documents to be sent to them. 

Reports

Ultimately, the point of this commission is so that they can come up with several different reports for the good of the country. In these reports, the FCIC will try to outline exactly what went wrong in multiple industries in the country and provide information about how this situation can be avoided in the future.