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Today: Eshoo to testify on Lehman Bros. losses

 

Congresswoman Anna Eshoo (D-Menlo Park) is scheduled to testify on Tuesday, April 20, before the House Financial Services Committee on the need for the federal government to provide financial relief for public agencies that lost hundreds of millions of dollars when Lehman Bros. went bankrupt in September 2008, according to a spokesman for San Mateo County.

The hearing starts at 8 a.m., and will be Webcast (link below).

"San Mateo County alone lost $155 million in what were highly related investments," county spokesman Marshall Wilson said in a news alert. "This was not pension money but holdings from voter-approved construction bonds and operating funds."

Other big losers were school districts throughout the county, including the Sequoia Union High School District, which lost about $6.5 million; and the Menlo Park City School District, which lost about $3.5 million.

Ms. Eshoo's testimony will precede that of Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, according to Mr. Wilson. Also scheduled to testify: Anton Valukas, the court-appointed Lehman examiner, and Richard Fuld, the former Lehman chairman.

"Rep. Eshoo and local officials from across the country argue that local taxpayers should not suffer because of Wall Street's failures," Mr. Wilson wrote. "It's expected that (Ms. Eshoo) will introduce legislation that will help local governments recoup some of the losses."

Here is the link to the Webcast of the hearings.

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