Friday, May 8, 2009

Congress to Probe Financial Crisis, Considers Chair

Bloomberg reported three people are on Congress' short list to head a probe into America's financial implosion. The story stated:

Lawmakers have cited a groundswell of voter anger at providing a $700 billion rescue package for the same industry that caused the credit crunch in demanding an inquiry. The investigation is likely to identify names of those judged responsible, with public hearings on Capitol Hill, and may shape an overhaul of financial regulation, the people said.
Candidates include Sandra Day O'Connor, Paul Volcker, and Arthur Levitt. Volcker and Levitt already chair efforts to reform world financial systems. Volcker lead the Group of Thirty study, while Levitt co-chairs a U.S. financial industry overhaul effort.

If Levitt nabs the appointment, that's good news for The Carlyle Group. Arthur is a Senior Adviser for Carlyle. He favors regulating hedge funds and credit rating agencies, but not private equity underwriters (PEU's). The free pass for PEU's and sovereign wealth funds is clearly in play. Arthur's appointment as Chair of a Congressional study would reinforce this effort. It would also show Congress' Corporacratic nature.