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"The list of regulatory mistakes and misjudgments is long, and the cost to taxpayers and our economy is staggering," Chairman Henry Waxman said at the Committee on Oversight and Government Reform hearing on the financial crisis and the role of federal regulators.

Testifying was Alan Greenspan, former Chairman of the Federal Reserve System, Christopher Cox, Chairman of the Securities and Exchange Commission, and John Snow, former Secretary of the Treasury under President George W. Bush.

Greenspan highlighted that in 2005 he had raised concerns that the protracted period of underpricing of risk would have dire consequences. Greenspan went on to say that even though he raised concerns about possible financial problems, he could not have imagined it to be as broad as it was. "The financial landscape that will greet the end of the crisis will be far different from the one that entered it little more than a year ago. Investors will be exceptionally cautious. Structured investment vehicles and other exotic financial instruments are not now, and are unlikely to ever find willing investors. Subprime mortgages will also be on that list, this market for which has virtually disappeared," Greenspan said.

Greenspan flip-flopped on issues surrounding regulations in banking institutions and what he had previously stated. In previous interviews, Greenspan had stated that he believed it should be left up to the banks to regulate and not the government. Waxman asked Greenspan if he still thought it was a good idea to let the banks regulate instead of having the government step in. "I was partially wrong with saying that banks should regulate themselves. The problem I'm having is that I still don't understand fully how this crisis happened and why it happened. When the facts change, I will begin to change my view," Greenspan said, commenting on Rep. Waxman's questioning.

Cox said that he thinks one of the reasons why the crisis happened was because a lot had changed since 1999 and the time of the Clinton Administration. "Credit default swaps were just emerging in 1999, but now they are between 10 to 15 percent of the financial institutions, and one of the main issues surrounding the financial crisis," Cox said.

Snow believes that if Congress would have done more in 2005, the financial crisis may be completely different. He said that with a "stronger regulatory set in place back then, and if our Government would have gotten more involved with the issues surrounding credit default swaps, taxpayers would be looking at the economy differently today."

One statement all three panelists and Chairman Waxman agreed on was that the crisis will pass and America will reemerge with a far sounder financial system. Chairman Waxman concluded with the statement that he hopes to further these investigations, and find a "clear cut reason why all of this happened."