Earlier this year, House Speaker Nancy Pelosi suggested the creation of an internal "Pecora-like" congressional committee to investigate the causes of the financial crisis, and, since then, we've been following the idea as it moves closer to fruition.
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In the last couple weeks, there have been some significant developments on that front. On the House side, influential Rep. John Dingell (D-MI) introduced a stand-alone resolution that mirrors Pelosi's preference. "This [House] select committee," Dingell said, would "be comprised of members appointed from the Committees on Financial Services, Agriculture, Energy and Commerce, and Oversight and Government Reform...modeled on the Pecora Commission that held hearings in 1932 and 1933 to investigate the roots of the Great Depression."
The Pecora investigations were conducted in the Senate Banking Committee, but you get the idea. Dingell hasn't been in close conversation with leadership about his particular plan, but he did send Pelosi a letter asking for her support. I asked Dingell spokesman Adam Benson why Dingell prefers this configuration as oppose to, for instance, an independent outside commission. He said, "The committees of jurisdiction should be involved because they'll be the ones to write any legislation that results from the investigation."
Senators Byron Dorgan (D-ND) and John McCain (R-AZ) feel much the same way. They introduced a measure that would create a select committee in the Senate with the same charge. "While I also support an outside commission, and have previously introduced legislation to establish such a commission," Dorgan said, "I believe the Senate has an important oversight responsibility that cannot be delegated. That's why we need a select Senate committee to investigate this financial crisis and make sure it never happens again."
That measure--an amendment to the Fraud Enforcement Recovery Act (FERA)--got the go ahead earlier this week when the bill overwhelmingly passed the Senate.
But another, similar FERA amendment would create an external commission, containing members appointed by both House and Senate leaders, and Hill sources suggest that's where the action is.