A year and a half after Lehman Brothers' collapse, Senate Banking Committee Chairman Chris Dodd, D-Conn., is calling for a federal investigation into the "Lehman situation" and other companies that may have fudged their balance sheets, contributing to the financial crisis.
"We must work tirelessly to reduce the incidence of financial fraud in order to restore trust and confidence in the financial markets," Dodd wrote in a letter sent to Attorney General Eric Holder on Friday.
The letter comes a week after a court-appointed bankruptcy examiner released a 2,200-page report about the demise of Lehman Brothers. The firm's bankruptcy filing on September 15, 2008, was the largest Chapter 11 filing in U.S. history.
The report criticizes Lehman's use of an accounting trick called "Repo 105" to make its books look better.
Dodd released a draft bill on Monday aimed at preventing future Wall Street bailouts. The rule would create a new consumer regulator housed inside the Federal Reserve to ensure consumers get a fair shake with mortgages and credit cards. It would also trim the ranks of federal banking regulators and clarify the duties of remaining agencies.