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The House Financial Services Committee has issued subpoenas to two federal government agencies and a branch of the central bank requesting information and documents regarding the government's too big to fail designation and the Obama Administration's debt ceiling, according to an announcement Monday on the Committee's website. The Committee is accusing the U.S. Department of Justice, the Treasury Department, and the Federal Reserve Bank of New York of obstructing active investigations by withholding crucial information.
According to the Committee's announcement, the three agencies were warned that their failure to comply with the Committee's request to turn over the information would result in the issuance of subpoenas. The Committee is seeking information from the DOJ on whether or not Dodd-Frank ended too big to fail and if an institution's size has been a determining factor in deciding whether or not to prosecute. From Treasury and the New York Fed, the Committee is seeking documents and information related to the Obama Administration's contingency plan for the debt ceiling.
The nearly two-month long court battle between the Federal Housing Finance Agency and Nomura Holdings came to an end Monday when a federal judge found the bank liable for selling shoddy mortgages to Fannie Mae and Freddie Mac prior to the 2008 financial crisis. In a 361-page ruling, Judge Denise Cote said that the magnitude which Nomura and co-defendant Royal Bank of Scotland deceived the GSEs regarding the mortgage-backed securities was "enormous."
