Crisis Panel Says It Lacks Time, Money to Answer Lawmakers

The Financial Crisis Inquiry Commission doesn’t have the staff or money to fully respond to an investigation by congressional Republicans into allegations of overspending and partisanship, its chairman said.

Phil Angelides, the former California treasurer who leads the crisis panel, said in a letter sent this week to the heads of the House Financial Services and Oversight and Government Reform committees that he would try to turn over some of the information the lawmakers demanded. Still, he said, their request was so broad that the FCIC would likely be unable to comply before it goes out of business on Feb. 13.

“The document requests contained in your letter are quite expansive and production would require resources beyond the commission’s staff, financial and computer capabilities,” Angelides, a Democrat, wrote in the letter dated Jan. 31.

The 10-member commission, charged by Congress with delving into the origins of the 2008 financial collapse, released split findings last week. While the Democratic majority pinned much of the blame on Wall Street firms and Washington regulators, Republican members issued two dissents that criticized Democrats for failing to uncover the actual causes of the crisis.

The FCIC first came under the scrutiny of Representative Darrell Issa, chairman of the government reform committee, in July after it asked Congress for an additional $1.8 million on top of its $8 million budget. Issa, a California Republican, has pledged to look into the group’s spending and also wants to investigate why its members were unable to come up with a unanimous conclusion for the final report.

In his letter, Angelides told the lawmakers that the FCIC has 20 staff members remaining, most of whom are working to gather the committee’s historical records for the National Archives. He said that fulfilling their request would require them to review almost 400,000 e-mails alone.

The letter was written to Issa, Financial Services Committee Chairman Spencer Bachus of Alabama and Patrick McHenry of North Carolina, who heads an investigative subcommittee on banking issues. They asked for the documents from Angelides last month, telling him they were concerned with “continued management problems” at the commission.

To contact the reporters on this story: Robert Schmidt in Washington at rschmidt5@bloomberg.net; Phil Mattingly in Washington at pmattingly@bloomberg.net.

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net

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