This article is over 12 years old


Monday AM January 18th, 2009

The Texas Securities Commissioner blames federal regulators for failing to prevent the nation's financial crisis in 2008. She testified Thursday on Capitol Hill today about ways to improve the system. Sara Sciammacco reports from Washington.


To embed this piece of audio in your site, please use this code:

<iframe src="" style="height: 115px; width: 100%;"></iframe>

Commissioner Denny Crawford says too often the Securities and Exchange Commission dropped the ball when it came to protecting investors.

“Congress and federal regulatory agencies and the courts have created gaps and therefore the state securities regulators had to step up to the plate and fill that void. That’s not the kind of thing I want to be doing on a daily basis.”

Crawford ac knowledges the financial crisis was the result of many failures, but says state regulators should not be taking the heat. She told a 10-member bipartisan panel that if anything federal officials should follow their examples to target abusive sales practices and restore confidence.

“It is a really a beautiful business model for regulation on the regional level for SEC. It is only in Washington that we’ve had this problem.”

The Financial Crisis Inquiry Commission wants to know more about the role state regulators played in the financial meltdown so they can decide how to better combat fraud.

Subscribe to Today in Houston

Fill out the form below to subscribe our new daily editorial newsletter from the HPM Newsroom.

* required