Rubin Best Minds Missed Financial Crisis Warning Signs

04.08.10 | FL News Team

Former Treasury Secretary Robert Rubin says many of the best financial minds in the U.S. missed key warning signs leading to the 2008 Wall Street meltdown. Rubin, a former top executive at Citigroup, called the crisis in the financial sector an unusual confluence of several critical factors, including the subprime housing crisis and rising consumer debt. Testifying before the Financial Crisis Inquiry Commission, Rubin also said he learned belatedly that Citigroup was holding more than 40-billion dollars in high-risk mortgage securities.

 Meantime, former Citi CEO Chuck Prince said he's sorry that he and his management team "could not see the unprecedented market collapse" that was looming. Citi received tens of billions of dollars in federal bailout funds. The independent commission is investigating the root causes of 2008's financial sector meltdown, a crisis that prompted a global recession. Rubin, a treasury secretary during the Clinton administration, also called for financial regulatory reform. Reform legislation is pending in the Senate after earlier passage by the U.S. House.