House Panel to Investigate Fed’s BlackRock Hiring « The Washington Independent
Jul 31, 202079.3K Shares1M Views
As Charles Morris pointed outhere on Monday, the details of the Federal Reserve’s moves to engineer a takeover of Bear Stearns are beginning to emerge, and there’s plenty in them to make investors even more nervous.
Financial whizzes in the blogosphere have been busy poring over the event, with some even questioning whether the Fed’s actions might be illegal, since its charter prevents it from buying mortgage-backed securities. The Fed guaranteed nearly $30 billion in assets held by Bear Stearns to ensure its sale to JPMorgan Chase.
Now there’s more to come. House Oversight Committee Chairman Henry Waxman said Monday he plansto look into the Fed’s hiring of BlackRock Inc. to handle those assets. Waxman wants more details on how BlackRock came to be hired, and why.
The Fed’s move was unprecedented, and no one is going to let even the most obscure details go unexamined, as they once might have. With the economy worsening, the Fed’s will have to get used to the kind of second-guessing it didn’t have to face before.
Rhyley Carney
Reviewer
Latest Articles
Popular Articles