Welcome to the Domestic Policy Subcommittee’s website.
The Domestic Policy Subcommittee conducts oversight in many areas of government policy and business practice. Through investigations, hearings and reports, the subcommittee sheds light on waste, fraud and abuse, and identifies subjects for new legislation by Congress. The Subcommittee hopes to act as the eyes and ears of consumers, workers and small business.
I hope you will check back frequently for information on the work we are doing for the American people. Please email the Subcommittee with your comments and suggestions for topics to investigate.
Dennis Kucinich, Chairman
Paulson Set to Testify Before Committee on Thursday, July 16th
House Oversight Committee Chairman Edolphus “Ed” Towns (D-NY) and Domestic Policy Subcommittee Chairman Dennis Kucinich (D-OH) sent a letter to former Treasury Secretary Henry M. Paulson, Jr., confirming Mr. Paulson’s appearance before the House Oversight and Government Reform Committee on Thursday, July 16 2009.
Wednesday, June 24, 2009 | Corporate Accountability
Kucinich: ‘Contrary to a popularly held belief that the Government went too far in the Bank of America-Merrill Lynch deal, Our investigation reveals that what is remarkable is what the Government did NOT do.”
Washington D.C. (June 24, 2009) – Congressman Dennis Kucinich (D-OH), Chairman of the Domestic Policy Subcommittee of the Oversight and Government Reform Committee, today released the following statement after internal committee documents were leaked to the press:
Kucinich: "Contrary to popularly held belief that the Government went too far in the Bank of America-Merrill Lynch Deal, Our investigation reveals that what is remarkable is what Government did NOT do."
For Immediate Release:
Contact: Nathan White (202)225-5871
Kucinich: ‘Contrary to a popularly held belief that the Government went too far in the Bank of America-Merrill Lynch deal, Our investigation reveals that what is remarkable is what the Government did NOT do.”
Washington D.C. (June 24, 2009) – Congressman Dennis Kucinich (D-OH), Chairman of the Domestic Policy Subcommittee of the Oversight and Government Reform Committee, today released the following statement after internal committee documents were leaked to the press:
“Ordinarily I would not make a statement in advance of a Committee hearing, but documents leaked by the Committee’s minority create a misimpression that must be addressed in order for the public to have clarity about the Government’s role in Bank of America’s acquisition of Merrill Lynch,” said Kucinich.
“Contrary to a popularly held belief that the Government went too far in the Bank of America-Merrill deal, our investigation reveals that it is what the Government did NOT do that is remarkable.
“In two meetings in December, 2008, Bank of America’s Ken Lewis asserted that he had only recently become aware of the deteriorating situation at Merrill. He asserted that he believed he could justify invoking the MAC clause to back out of the deal, and he asserted that he needed considerable help from the government, including $13 billion more in new cash, as well as protection from Merrill Lynch losses. Staff and officials at the Fed looked more closely at the basis for Lewis’s assertions and determined that they were “somewhat suspect.”
“The Fed found, in contradiction to Ken Lewis’s representations, that Bank of America failed to do adequate due diligence in acquiring Merrill Lynch. The Fed found that Bank of America had known about accelerating losses at Merrill since mid-November, when shareholders could have used that information to decide on ratification of the merger. . And senior officials at the Fed believed that Bank of America could be in violation of securities laws for failing to inform shareholders about the Merrill losses known in mid-November. Furthermore, they believed that Ken Lewis’s threat of invoking a MAC was a “bargaining chip” and was not credible, that Bank of America was experiencing its own losses independent of Merrill Lynch and needed to be bailed out itself, and that there were serious doubts about the competence of Bank of America’s top management.
“Yet, in spite of the doubts felt about Ken Lewis’s management of Bank of America, the Fed’s leadership orchestrated an aid package that attached no meaningful conditions to the money. The Fed required no changes whatsoever in Bank of America’s deficient corporate leadership. The Fed even gave Bank of America more money than Ken Lewis had originally asked for.
“The disconnection between the Fed’s analysis of what went wrong at Bank of America, and what the Fed was willing to do about it, is significant for all of us, and will be the subject of tomorrow’s hearing,” said Kucinich.
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Thursday, June 18, 2009 |
Hearing on: After Injury, the Battle Begins: Evaluating Workers’ Compensation for Civilian Contractors in War Zones
On Thursday, June 18, 2009, at 2:00 p.m. in room 2154 of the Rayburn House Office Building, the Domestic Policy Subcommittee will hold a hearing entitled, “After Injury, the Battle Begins: Evaluating Workers’ Compensation for Civilian Contractors in War Zones.”
Wednesday, June 17, 2009 | Corporate Accountability
Towns, Kucinich Request Bernanke Testimony on BofA-Merrill Merger
Chairmen to continue examining Bank of America’s acquisition of Merrill Lynch.
Thursday, June 11, 2009 | Corporate Accountability
Opening Statement, Witness List and Webcast of the Joint Committee Hearing on: "Bank of America and Merrill Lynch: How Did a Private Deal Turn Into a Federal Bailout?"
Today at 10:00 am, The Committee on Oversight and Government Reform and Subcommittee on Domestic Policy held a hearing on: “Bank of America and Merrill Lynch: How Did a Private Deal Turn Into a Federal Bailout?” The hearing took place in room 2154 Rayburn House Office Building.