Accountability needed in wake of crisis

Heather Murren

Friday, Sept. 3, 2010 | 2 a.m.

Last year I was appointed by Senate Majority Leader Harry Reid as a member of an independent commission created by Congress to examine the causes of the financial and economic crisis on behalf of the American people. Nevada is fortunate to have two commissioners appointed by Sen. Reid: myself and attorney Byron Georgiou, representing not only the citizens of the United States but also the Nevadans who have been so affected by this crisis.

Composed of 10 commissioners and about 58 staff personnel, the Financial Crisis Inquiry Commission has been working hard to investigate, gather and analyze information for a final report to submit to the president and Congress on Dec. 15.

We are focused on identifying ways to prevent a crisis from happening again by determining what created an environment that fostered the extension of so many bad mortgages, how massive bets were made without understanding the risks, and how Wall Street contributed to the collapse.

Our commission is authorized to hold hearings, issue subpoenas for witness testimony or documents, and refer to the U.S. attorney general or the appropriate state attorney general any person who may have violated U.S. law in relation to the financial crisis.

So far, in Washington, D.C., and in New York City, we have held 12 days of public hearings with witnesses including Warren Buffett, Lloyd Blankfein and Tim Geithner. We have heard from our nation’s leading economists, private industry, top CEOs and board members — all the way to line staff, including those who originated mortgages, traded derivatives or wrote company ratings for rating agencies.

Because our crisis was global, we have heard from representatives of other countries’ regulatory and business sectors. We have analyzed hundreds of thousands of documents: economic reports, financial statements, private e-mail exchanges, transcripts of public and private discussions, and more.

We have interviewed more than 500 witnesses and issued follow-up inquiries to these witnesses to provide further substantiating or clarifying data. We have done grass-roots research with people on the street, gone out with local constables to better understand the foreclosure process and how it touches real people’s lives, and listened to those who have written, e-mailed and called. And yet we still have more information to uncover, analyze and synthesize.

In the midst of this work, we do not forget that Nevada has been more profoundly affected than almost any other place. Our job losses, foreclosures and despondency as a result of this crisis undermine our hope for a better future.

In recognition of these sobering facts, we are bringing a field hearing to Las Vegas on Sept. 8 to bring national attention to issues facing our community. We want to give a voice to our neighborhoods, businesses, schools and residents to share their insights and stories with the commission and the rest of our country.

We intend that the Las Vegas public hearing will allow the commission to absorb the facts from those in the trenches: those of us living outside of New York and D.C. whose lives are so profoundly shaped by the decisions and actions taken by individuals engaged directly with our financial markets and economy.

We have learned quite a bit so far. Notably to many on the commission, not one witness so far has taken responsibility for having been part of causing the crisis. Although policies, regulations, interest rates and capital flows all influence our economic health, there is no evading the fact that individual actions are what shape history — for better or for worse.

We need accountability. We need regulators who enforce the rules or speak up when the rules no longer are sufficient to keep the system safe. We need line staff and executives who are willing to pass up the quick — or easy — buck for the alternative of sustainable, healthy growth.

Certainly, we need individuals to be responsible for their own financial choices, but we also need to be sure those choices are well explained and understood.

We in Nevada have much to add to this discussion — and to the conclusions of our report. We are proud to have the opportunity to bring a public hearing to Las Vegas. Those who wish to attend may go to the Financial Crisis Inquiry Commission website for details: fcic.gov.