Financial Crisis Inquiry Commission Vs. Chamber of Commerce

February 4, 2011

The US Chamber of Commerce – yes, the same organization that is the biggest funder of GOP candidates – is saying the Financial Crisis Inquiry Commission’s report is bogus. Their reason? Because the four GOP members of the board were unsuccessful in banning certain words in the official report.

All the words in question are associated with banks. As such, the objective was to alleviate any role the banks played in the financial crisis. Political Correction broke down the Chambers objections piece by piece. The following is the segment titles. Follow the link to read the details.

CHAMBER COMPLAINT: Financial Crisis Report Doesn’t Count Because Republican Commissioners Disagree With Findings.

  • Chamber Complaint: Report “Fails To Reflect The Views Of The Commission As A Whole.

FACT: Report Only “Fails To Reflect The Views Of…The Whole” Because Republican Members Wanted To Ban References To “Wall Street” And “Deregulation”…

  • Terms Republicans Wanted To Ban Refer To Wall Street’s Unsupervised, Risky, Interdependent Way Of Managing Housing-Related Financial Instruments Ahead Of Crisis.
  • Republican Commissioner Holtz-Eakin Previously Blamed Wall Street For The Crisis.
  • Republican Commissioner Holtz-Eakin Previously Criticized “Shadow Banking”.
  • Republican Commissioner Hennessey Previously Warned Of Firms Being “Too Big And Interconnected To Fail Suddenly.”

FACT: Chamber, Republican Commissioners Seek To Blame Government, Downplay Role Of Subprime Lending.

  • Chamber President: Subprime Lending Is Not A Problem, Recession Unlikely To Occur. In 2007, Thomas Donohue, President of the U.S. Chamber of Commerce, cautioned that subprime lending was not as big problem as some were arguing and predicted that a recession was unlikely to occur.
  • Republican Commissioners Seek To Blame Government Actions For The Crisis.
  • Subprime Mortgage Data Do Not Support Claim That Government Actions Triggered Crisis.
  • Three Republican Members Of Commission Place Blame On Subprime Lending By Private Firms Like Countrywide.

CHAMBER COMPLAINT: Commission Tasked With Explaining Financial Crisis To America Is Too Obsessed With “Transparency”.

  • Chamber: Transparency Into Causes Of Crisis Would “Effectively Create A Government-Sanctioned Wikileaks.”
  • Commission Conclusion: Lack Of Transparency Contributed To Crisis.

CHAMBER COMPLAINT: By Dividing Along Party Lines, Commission Failed To Adequately Address Problems With Financial Regulations.

  • Chamber: Commission Missed Chance To Recommend “How To Strengthen Our Financial Regulatory System.”

FACT: The Report “Fails To Reflect The Views Of The Commission As A Whole” Because Republican Commissioners Oppose Regulation.

  • Republican Commissioners Voted To Ban The Word “Deregulation” From Commission Findings.
  • Republican Member Of Commission, Peter J. Wallison, Specializes In Financial Deregulation.
    • Financial Crisis Expert Barry Ritholtz: Wallison’s Employer Sought To Cover Up His Ties To Deregulation.
  • Douglas Holtz-Eakin, Republican Member Of Commission, Complained About Banking Interests Weakening Regulation.

FACT: The Chamber Opposes Strong Financial Regulations.

  • Chamber In 2007: Regulations Are Antiquated.
  • Chamber Paid By Banks To Weaken Regulation.

CHAMBER COMPLAINT: Commission Report Will Hurt Job Market.

  • Chamber: Findings Of Commission Are “Bad News” For Job-Seekers.

FACT: Chamber Position Is That Financial Regulations Inhibit Job Creation.

  • Chamber President: Passage Of Financial Regulatory Reform Is “A Sad Day For The U.S. Economy, For Jobs.”
  • Chamber Opposed Consumer Financial Protection Agency.
  • Banking Industry Opposed Consumer Financial Protection Agency.

FACT: Despite Jobs Protestations, Chamber Supports Outsourcing.

  • Chamber President: Outsourcing Is Great.
  • Chamber Came Out Against Legislation Aimed At Curbing Outsourcing.


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