Financial Reform Legislation Testimony

The truth of the matter is that we don't need new laws but rather we need to enforce the laws on the books. The same argument made by gun control advocates, that the current laws aren't good enough, are being used by lawmakers and President Obama in demanding new financial regulations. Just like our gun laws we only need to enforce the current laws to protect the public.

There is no reason why under Sarbanes-Oxley that Lehman's former CEO, Richard Fuld, shouldn't be behind bars right now.

Lehman, which went bankrupt in September 2008, and triggered a broad financial panic, hid the degree of its indebtedness by shifting money around right before the end of each quarter, according to a bankruptcy examiner's report. The transactions were known as "Repo 105" and allowed Lehman to move $50 billion off the balance sheet that it released to the public.

"I have absolutely no recollection whatsoever of hearing anything about Repo 105 transactions while I was CEO of Lehman," Richard Fuld says in written testimony to be delivered to the House Financial Services Committee on Tuesday. "The first time I recall ever hearing the term 'Repo 105' was a year after the bankruptcy filing, in connection with questions raised by the Examiner."

Well Mr. Fuld you signed the fincinal filinges each qaurter so you should have known about these Repos and if you didn't well you broke the law. Either way you committed fraud under Sarbanes and you should be held responsible for your actions or inactions.

The regulators were complicit in creating the current recession and Mr. William Black, a former regulator himself, calls out the Federal Reserve, the Treasury and the SEC as being inept in doing their jobs.