Flawed Incentives Were the Rot Behind the Mortgage Crisis

The mortgage-backed securities meltdown whose effects still haunt our economy sprang from a simple cause: The rules of the game gave big incentives to every player involved to ignore the problems and keep collecting their fees. And despite financial reform, those rules haven't changed much.

FCIC Threatens Goldman Sachs with Audit

While Goldman Sachs has settled the SEC's fraud case against it, its dispute with the Financial Crisis Inquiry Commission is ongoing. Goldman says it's cooperating, but the FCIC is unconvinced: It's threatening the investment bank with an outside audit of its derivatives business.

AIG's Bailout
Was Needlessly Expensive

When the government bailed out AIG, it paid 100 cents on the dollar amount demanded by the banks: $67 billion. Former AIG executive Joseph Cassano says he has no idea why the government paid full price, asserting that he could have "negotiated an appreciably better deal" for taxpayers.