How did the most dynamic and sophisticated financial markets in the world come to the brink of collapse? The Washington Post examines how Wall Street innovation outpaced Washington regulation.
[Editor’s note: All content republished from The Washington Post’s 15 October 2008 edition.]
The Story
What Went Wrong?
How did the world’s markets come to the brink of collapse? Some say regulators failed. Others claim deregulation left them handcuffed. Who’s right? Both are. This is the story of how Washington never caught up to Wall Street.
Key Players in Market Regulation
Bio pictures and quotes.
The Graphics
Riding the Crest
Wall Street devised exotic securities to earn fees from the debt boom.
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The Crash
Overburdened by debt, a relatively small percentage of homeowners began missing mortgage payments, creating a domino effect that sent losses throughout financial markets.
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Graphics by Brenna Maloney, Jill Drew, Ellen Nakashima and Todd Lindeman – The Washington Post – October 15, 2008.