Entire Financial System Responsible For The Crisis, Say Former Citigroup Executives

By Chingyu Wang-Talk Radio News Service

Two top executives from Citigroup Inc., a major issuer of subprime mortgages, told the Financial Crisis Inquiry Commission Thursday that blame for the failure to deter the financial crisis lies with the financial system as a whole.

"Almost all of us involved in the financial system, including financial firms, regulators, rating agencies, analysts, and commentators, missed the powerful combination of forces at work and the serious possibility of a massive crisis," said former Chairman of Citigroup Executive Committee Robert Rubin.

Former Chairman and CEO of Citigroup Charles Prince said he believes that the financial crisis originated from the long period of low interest rates, which ultimately led to a dramatic growth in securitized products.

"The rating agencies dramatically downgraded their ratings on the securitized products collateralized by these subprime loans," said Prince.

Prince said that everyone believed "these securities held virtually no risk- a perception strongly reinforced by the above AAA rating bestowed by the rating agencies."