The effects of hundreds of thousands of foreclosed homes across the country are so devastating that the U.S. Senate was spurred to create legislation to ensure the foreclosure crisis that started the economic downturn will not happen again.
The Senate, voting 92-4, approved a proposal that would create a commission of financial experts to investigate what precipitated the economic crisis and what brought about the devastating numbers of foreclosures homes for sale.
Senator Johnny Isakson, a Republican and lead sponsor of the proposal, said the country needs an independent group of experts to investigate with objectivity the mistakes made and what could have been done to prevent the causes that led to the economic crisis, considered the worst since the Great Depression.
The commission will also investigate the role of the mortgage lending industry in activities that caused the unprecedented numbers of foreclosed homes across the country.
Both the Senate and the House would have to approve measures for the creation of an independent commission before a bill could be presented to President Obama for signing.
Kent Conrad, a Democrat and one of the chief sponsors, said the commission will probe financial fraud and help create steps to ensure the events that led to the nationwide crisis will not happen again.
The commission, to be called Financial Markets Commission, would consist of ten members that would be chosen by Republican and Democratic leaders in Congress. The members will be chosen from among the country's top financial experts and would exclude congressional members.
The financial commission would be patterned after the September 11 Commission, the body which investigated contributory events before the terrorist attacks on September 11, 2001 and recommended measures to prevent similar attacks.
In addition, the commission would acquire subpoena power and the power to notify the U.S. Attorney General's Office and state attorneys about evidence it has against persons or institutions that violated laws and contributed to the housing market collapse and the avalanche of foreclosed homes.
The commission is given 18 months to complete its probe and present its findings to Congress.
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