The Subcommittee on Capital Markets and Government Sponsored Enterprises will meet for a hearing on Thursday to examine recent actions taken by the Obama Administration that have favored particular groups at the expense of U.S. investors.
"We are holding this hearing to examine a number of actions taken by the Obama administration where they have sided with big banks, deadbeat foreign governments and big labor at the expense of public pension funds, 401(k) plans, university endowments, mutual funds, insurance companies, foundations and municipal entities. Investor protection is tantamount to ensuring healthy and well-functioning capital markets. The administration should be working to protect investors, not harm them," said Subcommittee Chairman Scott Garrett.
In particular, the hearing will focus on:
the Administration's role in brokering the mortgage servicing settlement agreement that allows mortgage servicers to write down the principal on mortgages held by asset-backed securitization trusts;
the Administration's filing of an unsolicited amicus brief in the U.S. Court of Appeals for the 2nd Circuit in support of Argentina and against U.S. investors; and
the Administration's conditioning its financial support of Chrysler on secured bondholders accepting 29 cents-on-the-dollar while the United Auto Workers pension plans, which were unsecured creditors, received more than 40 cents-on-the-dollar.
The hearing will take place on Thursday, June 7 at 2 p.m. in room 2128 Rayburn House Office Building.