Later On

A blog written for those whose interests more or less match mine.

Congress may look at mortgage crisis

with 6 comments

Mary Kane in the Washington Independent:

In the wake of the Great Depression, a Congressional panel known as the Pecora Commission investigated Wall Street’s actions and set the stage for financial regulation that lasted for decades. Last week, we noted that despite calls from some on the left, a new Pecora-style probe would be unlikely, given that Congress itself undid many of those same regulations and contributed in a substantial way to the subprime crisis.

But not so fast. Sam Stein at The Huffington Post reports that Congress may move soon on an investigation modeled after the Sept. 11 commission to examine the financial meltdown:

The House of Representatives came to agreement on Monday afternoon on the establishment of a 9/11-styled commission that would be independent of Congress and granted the power of subpoena to investigate the origins of the financial crisis.

Aides on the Hill said that the House will likely vote on the measure Wednesday, adding that the chances of passage were high. The office of the bill’s cosponsor, Congressman Darrell Issa, said the legislation would be similar to that recently passed by the Senate.

The concept of the commission is pegged to the investigative body that looked into the intelligence collapse preceding the terrorist attacks on 9/11.

The key, in this case, is that the body – eight or (likely) ten members, split evenly by party affiliation – would have the power of subpoena, compelling the key players to testify. “It is,” said one staffer involved in the creating of this legislation, “essential.”

If a commission does get approved, look for it to be extremely busy. There’s plenty to investigate, from securities fraud to all the political moves to strip financial regulations. This may not mark the return of the Pecora Commission, but it could come pretty close.

Written by LeisureGuy

5 May 2009 at 10:17 am

6 Responses

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  1. I don’t believe there is any way Congress is going to allow such a commission to be created. They (and we) all know who had a major role in creating this problems. Between their own guilt and the guilt of greedy Wall Street firms (who contribute millions to their campaigns), why would they allow it.

    Ron Stone

    11 July 2009 at 1:11 pm

  2. Well, Congress played a somewhat passive role: they listened (alas) to Alan Greenspan, who fought off any regulation of the sub-prime mortgages, securitization of mortgages, and credit default swaps. The primary guilt lies with AIG and Wall Street, along with Countrywide and some rogue players like that.


    11 July 2009 at 1:32 pm

  3. Totally agree..they’ll never allow it because 1. They know what they have to lose, and 2. They control it!
    ..And I’d like to see where we would be if Bush was still in office and we didn’t have obama’s stimulus package.

    Obama's Stimulus Package

    14 October 2009 at 9:05 am

  4. Didnt happen…….. No matter at this point. No doubt there are still a lot of people without jobs and lot with less paying jobs, that being said the recession is over…..we will be back!


    15 October 2009 at 9:55 pm

  5. Hi – Great blog, thanks for posting this info. It’s tough to find real data on the housing market these days. Thank you for writing about it.

    I hope the Congress does take a real serious look at the problems you write about. It’s sickening to think of people losing their houses due to this crisis.

    Please check out my blog @ Let me know what you think.



    21 October 2009 at 10:43 am

  6. Sorely needed but to my knowledge, no such commission was approved. If it was, it certainly has been keeping a low profile. Another case of bureaucrats being their own watchdog. Another case of government being more of the problems in this country than the solution. A sad case.

    Ron Stone

    5 November 2009 at 9:53 am

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