Tuesday, September 16, 2008

Pelosi to Investigate Bush's Role in Wall Street Crisis

House Speaker Nancy Pelosi has set into motion a broad, swift investigation of Wall Street, and will demand testimony during the presidential campaign from Bush administration officials and financial leaders, congressional officials have told Mike Allen of Politico tonight.

Excerpts of Allen's report are as follows:

House Democrats plan to aggressively look at the administration’s role in the meltdown over the weekend and to explore further regulation and government structures that would be taken up under the new president.

Republican aides accused Democrats of trying to shift blame with a series of “show trials,” but acknowledged that key officials will wind up cooperating.

The hearings will take place over the next few weeks, the officials said. Treasury Secretary Henry Paulson, who regularly appears on Capitol Hill, will be called to testify as part of the investigation.

As the main event, Rep. Henry Waxman (D-Calif.), chairman of the House oversight committee, wrote to Richard Fuld, chief executive of the imploded Lehman Brothers, to ask him to appear on Capitol Hill on Sept. 25.

“The hearing will examine the regulatory mistakes and financial excesses that led to yesterday's bankruptcy filing by Lehman Brothers,” Waxman wrote. “The committee will also explore the impacts of the Lehman bankruptcy on financial markets and the United
Separately, Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, plans a forward-looking hearing with economists on Wednesday to “begin a conversation about where we go with the capital markets,” a House aide said.

Earlier on MSNBC, Pelosi had said that Democrats have no responsibility in causing the crisis, and that is was completely the fault of the Republicans.

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