Scott Ellis 9:46 p.m., April 22
USD's Partnoy Asks Panel Why FBI Mortgage Warning Ignored
University of San Diego law Professor Frank Partnoy testified before the Financial Crisis Inquiry Commission yesterday (Jan. 12) as it kicked off its probe into causes of the financial meltdown that led to the Great Recession. Along with former New York Gov. Eliot Spitzer and former savings & loan regulator William Black, Partnoy said the commission should look into what, if any, steps were taken after a senior FBI official warned Congress in 2004 that a developing epidemic of mortgage fraud could produce a financial crisis.The three, who also wrote an op-ed piece for the New York Times in December, said the commission should explore the extent to which big banks laid off their subprime mortgage risks on the American International Group, the big insurer that was eventually given a $182 billion bailout package.