Blame Game Begins on Capitol Hill - Lehman Brothers Execs Tell Congress They Didn't Keep Documents

[avaistheone1]

By RHONDA SCHWARTZ
September 26, 2008—

While the country waits anxiously for Congress and the White House to agree on a plan to prevent economic collapse, others on the hill are already searching for whom to blame.
House Oversight Committee Democrat Henry Waxman has already summoned the former chief of Lehman Brothers, the failed investment bank whose collapse stunned the nation last week, to testify under oath before his committee next week.

And late today, Waxman publicly blasted the former Wall Street titans for not cooperating with requests for documents and emails, saying Lehman's counsel has told the committee "although these documents did exist at one time, they were typically "discarded.""
"It is difficult to understand how Lehman Brothers is unable to produce a single internal document that went to or from the CEO's office over the past six months," the letter stated. "It is also difficult to understand why there is no log, file, or other record documenting where these internal documents went."

Lehman Brothers did not immediately return a call from ABC News seeking comment.
Separately, an audit requested by Republican Senator Charles Grassley was released Friday, offering a highly critical report of the Security and Exchange Commission's own leadership.
The audit said officials failed to act in the face of potential red flags or take action against Bear Stearns' "concentration of mortgage securities, high leverage, shortcomings of risk management in mortgage-backed securities and lack of compliance with the spirit of certain" international standards.

"It is indisputable that the CSE program failed to carry out its mission in its oversight of Bear Stearns," the report said. "The audit found that procedures and processes were not strictly adhered to."
Grassley responded Friday said the report is "another indictment of failed leadership."
All this comes before an agreement on how to save the nation's economy has even been settled.

http://abcnews.go.com/Blotter/story?id=5896037&page=1



If Lehman Brothers didn't keep documents, can we really expect Golman Sachs or any of the other firms we are bailing out to not have done likewise.

Totally amazing yet 10,000 Lehman employees walked with $2.5 Billion dollars of bonuses when their firm closed.

[liberal N proud]

1. There are laws that require companies to keep financial document

Laws govern all sorts of document retention and for them to say they don't have the documents is a violation of the law.

It also is right out of the republican play book. Destroyed emails and missing white house visitor logs among the mass cover up from the bu$h regime. Now Wall Street firms are just following the leader.

[angstlessk]

3. yeah, next time IRS audits I will explain how I did not save any of my docs

and see how that works! The IRS has more enforcement capabilities than the fucking congress!

[avaistheone1]

4. The lack of ethics is rampant between Wall Street and the Bush admin.

It is a culture of corruption. The mismanagement and malfeasance is stunning. I imagine quite a few of Lehman Brothers former customers will not be pleased that they did not keep key documents.

[angstlessk]

2. have you noticed one of the few stocks to really shoot up are the paper shredding

cos.??

[Marie26]

5. It's not a bailout, it's a cover-up. nt

[lonestarnot]

7. It's not just a cover-up, it is a fucking gamed cover-up. They know it's a cover-up, they are

aiding and abetting a cover-up and throwing money at them!

[spanone]

6. i beleive we are dealing with obstruction of justice here

[dixiegrrrrl]

9. We will make sure the Just-Us dept gets right on that.

[global1]

8. This Sure Instill A Lot Of Confidence In These Firms - Doesn't It?.....

They want the American people to trust them with their money - yet by statements like this that they don't have a paper trail - one sits back and says - is this who I want to handle my money?

This is absolutely ridiculous.

It makes one just want to put all their money in their mattresses. At least you know where it is and can sleep nights knowing so.