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GOP Minority Takes Issue with Financial Crisis Report

Saying the majority report is too simplistic in its findings, GOP members of the Financial Crisis Inquiry Commission will issue a dissenting view that points more to the global nature of the crisis and not so much on a lack of regulations.

The Financial Crisis Inquiry Commission Hearing held on January 13, 2010. Pictured are the Financial Institution Representatives: Lloyd C. Blankfein of Goldman Sachs, James Dimon, of JPMorgan Chase & Company, John J. Mack of Morgan Stanley, and Brian T. Moynihan of Bank of America.
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The Financial Crisis Inquiry Commission Hearing held on January 13, 2010. Pictured are the Financial Institution Representatives: Lloyd C. Blankfein of Goldman Sachs, James Dimon, of JPMorgan Chase & Company, John J. Mack of Morgan Stanley, and Brian T. Moynihan of Bank of America.

In their minority report to the commission's findings—both of which are expected to be officially released Thursday—the three Republican members argue that the Democratic majority ignored the credit bubble beyond housing and focused too narrowly on regulation and supervision.

The majority also needed to look beyond the failures of the U.S. securitization market, the dissenters said.

In their report, a draft of which was obtained by CNBC, the minority argue that large capital surpluses in China and elsewhere helped contribute to the credit bubble. They also pointed to problems with non-standard mortgages, crediting ratings, and risk concentration.

The Democratic majority, according to reports based on early drafts of its findings, spread the blame widely to regulators, politicians, financial firms and credit rating agencies.

The 10-member FCIC was set up by Congress in May 2009. It was assigned the task of explaining the causes of the worst financial crisis in generations.

You can read the full minority report here.

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