Senator Urges AG to Examine Firms That Helped Trigger Economic Meltdown

Washington – Senator Kent Conrad today urged the United States Attorney General to open a criminal investigation into the failed financial institutions that helped trigger the current economic crisis facing the nation.

In a sharply worded letter to Attorney General Michael Mukasey, Senator Conrad called for a thorough investigation of the financial industry to ensure that any criminal wrongdoing that may have contributed to the current crisis is uncovered and punished.

“We need to take a long hard look at how our financial system spiraled downward so far so fast,” Senator Conrad said.  “People need to be held accountable.  There need to be investigations into the failed financial institutions that helped trigger this economic meltdown. If fraud is found, people need to go to prison. And we need new rules to make sure this does not happen again.”

The full text of the letter is below:

October 1, 2008

The Honorable Michael B. Mukasey

Attorney General

Department of Justice

Washington, DC 20530-0001

Attorney General Mukasey:

I write to call for a thorough investigation of the financial industry to ensure that any criminal wrongdoing that contributed to the current crisis is uncovered and punished.

The past few months have seen the unfolding of the greatest financial crisis in memory.  The Congress and the Administration have responded with the consideration and implementation of unprecedented measures to shore up the economy and protect the American taxpayers.  Given the gravity of the situation, the American people need to know if any of the blame lies with the wrongdoing of any individuals or institutions. 

It is my understanding that the F.B.I. has undertaken investigations into certain activities of A.I.G., Lehman Brothers, Fannie Mae and Freddie Mac.  I call upon the Justice Department to expand its scrutiny of the financial and housing industries in order to expose possible wrongdoing at other institutions that may have contributed to the present state of our markets and economy.  Any violations of law must be prosecuted and those responsible must be held to account.

Thank you for your attention to this matter.

Sincerely,

KENT CONRAD

Senate