Lehman, AIG CEOs to testify before Congress

Lehman, AIG CEOs to testify before Congress

Washington: The chief executive of collapsed investment firm Lehman Brothers and the current and former CEOs of troubled insurance giant AIG have been summoned to testify before Congress, an influential US lawmaker said.

The two-day hearing in early October will “examine the regulatory mistakes and financial excesses" that led to the bankruptcy filing by Lehman Brothers and the government bailout of AIG, said Representative Henry Waxman, chairman of the House Oversight and Government Reform Committee yesterday.

“Lax oversight and reckless investments on Wall Street are causing massive disruption throughout our economy," said Waxman.

“Our hearings will examine what went wrong and who should be held to account."

Waxman sent letters requesting testimony to Lehman Brothers CEO Richard Fuld, to appear before the panel on October 6, and AIG CEO Robert Willumstad to testify on 7 October.

Letters from Waxman were also sent to former AIG chief executives Martin Sullivan and Maurice Greenberg, to appear on the same day as Willumstad.

House Speaker Nancy Pelosi railed against what she called “our nation’s largest bailout ever."

“An $85 billion loan is a staggering sum and is just too enormous for the American people to bear the risk," she said in a statement. “Congress will demand answers to prevent this from happening again."