Contributory factors (Continued) Other factors were:  Excess global liquidity and globalization of investment flows  Federal reserve policy response of monetary easing  Asset inflation (housing and commodities bubbles)  Poor and incomplete supervision and oversight of shadow banking system  Pressure to grow revenues by taking more risk  Excessive leverage  Pervasive reliance on mathematical models  External credit ratings substitute for banks own due diligence  Deficiencies in the Originate to distribute model vs.
{}