Rep. Barney Frank Holds a Hearing On the Lehman Bankruptcy Examiner Report, Panel 2

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Rep. Barney Frank Holds a Hearing On the Lehman Bankruptcy Examiner Report, Panel 2

HOUSE COMMITTEE ON FINANCIAL SERVICES HOLDS A HEARING ON THE LEHMAN BANKRUPTCY EXAMINER REPORT, PANEL 2

APRIL 20, 2010

SPEAKERS: REP. BARNEY FRANK, D-MASS. CHAIRMAN REP. PAUL E. KANJORSKI, D-PA. REP. MAXINE WATERS, D-CALIF. REP. CAROLYN B. MALONEY, D-N.Y. REP. LUIS V. GUTIERREZ, D-ILL. REP. NYDIA M. VELAZQUEZ, D-N.Y. REP. MELVIN WATT, D-N.C. REP. GARY L. ACKERMAN, D-N.Y. REP. BRAD SHERMAN, D-CALIF. REP. GREGORY W. MEEKS, D-N.Y. REP. DENNIS MOORE, D-KAN. REP. MICHAEL E. CAPUANO, D-MASS. REP. RUBEN HINOJOSA, D-TEXAS REP. WILLIAM LACY CLAY, D-MO. REP. CAROLYN MCCARTHY, D-N.Y. REP. JOE BACA, D-CALIF. REP. STEPHEN F. LYNCH, D-MASS. REP. BRAD MILLER, D-N.C. REP. DAVID SCOTT, D-GA. REP. AL GREEN, D-TEXAS REP. EMANUEL CLEAVER II, D-MO. REP. MELISSA BEAN, D-ILL. REP. GWEN MOORE, D-WISC. REP. PAUL W. HODES, D-N.H. REP. KEITH ELLISON, D-MINN. REP. RON KLEIN, D-FLA. REP. CHARLIE WILSON, D-OHIO REP. ED PERLMUTTER, D-COLO. REP. JOE DONNELLY, D-IND. REP. BILL FOSTER, D-ILL. REP. ANDRE CARSON, D-IND. REP. JACKIE SPEIER, D-CALIF. REP. TRAVIS CHILDERS, D-MISS. REP. WALT MINNICK, D-IDAHO REP. ALAN GRAYSON, D-FLA. REP. SUZANNE KOSMAS, D-FLA. REP. JOHN ADLER, D-N.J. REP. MARY JO KILROY, D-OHIO REP. STEVE DRIEHAUS, D-OHIO REP. JIM HIMES, D-CONN. REP. GARY PETERS, D-MICH. REP. DANIEL MAFFEI, D-N.Y.

REP. SPENCER BACHUS, R-ALA. RANKING MEMBER REP. MICHAEL N. CASTLE, R-DEL. REP. PETER T. KING, R-N.Y. REP. ED ROYCE, R-CALIF. REP. FRANK D. LUCAS, R-OKLA. REP. RON PAUL, R-TEXAS REP. DONALD MANZULLO, R-ILL. REP. WALTER B. JONES, R-N.C. REP. JUDY BIGGERT, R-ILL. REP. GARY G. MILLER, R-CALIF. REP. SHELLEY MOORE CAPITO, R-W.VA. REP. JEB HENSARLING, R-TEXAS REP. SCOTT GARRETT, R-N.J. REP. J. GRESHAM BARRETT, R-S.C. REP. JIM GERLACH, R-PA. REP. RANDY NEUGEBAUER, R-TEXAS REP. TOM PRICE, R-GA. REP. PATRICK T. MCHENRY, R-N.C. REP. JOHN CAMPBELL, R-CALIF. REP. ADAM H. PUTNAM, R-FLA. REP. MICHELE BACHMANN, R-MINN. REP. KENNY MARCHANT, R-TEXAS REP. THADDEUS MCCOTTER, R-MICH. REP. KEVIN MCCARTHY, R-CALIF. REP. BILL POSEY, R-FLA. REP. LYNN JENKINS, R-KAN. REP. ERIK PAULSEN, R-MINN. REP. CHRISTOPHER LEE, R-N.Y. REP. LEONARD LANCE, R-N.J.

REP. ED PERLMUTTER, D-COLO. REP. ANNA G. ESHOO, D-CALIF.

WITNESSES: SECRETARY OF THE TREASURY TIMOTHY F. GEITHNER

FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS CHAIRMAN BEN BERNANKE

MARY SCHAPIRO, CHAIRMAN, SECURITIES AND EXCHANGE COMMISSION

[*] FRANK: We will continue. I know there is ongoing legislative activity here. Our colleagues have been very diligent, along with Ms. Speier, to try to pursue some relief for their constituencies. And we'll continue to cooperate with them.

We will now begin with opening statements. And we need our witnesses to leave quickly.

PERLMUTTER: We're leaving. We're leaving.

FRANK: Anna, get up. I've got to get started here. Thank you.

And now we will begin the opening statements with the gentleman from Pennsylvania, Mr. Kanjorski, the chairman of the subcommittee.

KANJORSKI: Thank you, Mr. Chairman.

We meet again today to examine yet another massive corporate failure. We have heard this sad song of corporate greed and regulatory breakdowns one too many times in recent years in instances like the accounting misdeeds at Enron, the massive Madoff fraud, and the audacious bets of the American International Group. The events that led to Lehman's collapse add another verse to this troubling refrain in American capitalism.

In the Lehman tune, it deeply troubles me that we must once again explore how reckless Wall Street titans profited at the expense of innocent shareholders on Main Street. I'm also deeply disappointed in the performance of auditors and regulators who failed to uncover wrongdoing, mismanagement, and capital shortfalls even as they fiddled in Lehman's offices. The American people, those who i...

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