Yesterday Financial Crisis Inquiry Commission (FCIC) issued report on the causes of financial crisis. The 2008 crisis was avoidable, the results showed. According to the report, one of the causes of financial crisis was an explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis.

It says Federal Reserve’s failure to stem the tide of toxic mortgages and dramatic breakdowns in corporate governance let to the 2008 crisis.

“Despite the expressed view of many on Wall Street and in Washington that the crisis could not have been foreseen or avoided, there were warning signs. The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done. If we accept this notion, it will happen again” said Phil Angelides, Chairman of the Commission.

In a 576-page report several financial institutions are accused of greed.The report criticizes heads of Federal Reserve System Ben Bernanke and Alan Greenspan.

“The crisis was the result of human action and inaction,” is said in the conclusions that commission posted on its website. “We clearly believe the crisis was a result of human mistakes, misjudgments, and misdeeds that resulted in systemic failures for which our nation has paid dearly,” it says.