Phil Angelides, the former state treasurer of California, is leading the group. He asked Alan Greenspan, the former federal chairman, why he did not crack down on abusive and deceptive lending practices.
"Was there just a reluctance to regulate?" asked Angelides.
"Remember the Federal Reserve Board is rule-making, it is not an enforcement agency. We did not have the capacity to implement the types of enforcement that the FDIC has, that HUD has, or the Justice Department," said Angelides.
"My view is, and I want to move on to another issue, is you could have, you should have and you didn't," said Angelides.
The Financial Crisis Inquiry Commission will issue a report on the meltdown by December.