The Financial Crisis Inquiry Commission may issue subpoenas to secure documents and interviews, said Phil Angelides, chair of the bipartisan panel charged with determining the causes of the financial crisis that led to the bailout.
"If we want to talk to someone, we will talk to someone," Angelides said, adding that he anticipates the mere threat of a subpoena will keep the board from having to issue one. "At least at this moment, we feel we're getting good cooperation."
Angelides delivered his remarks Tuesday at an event sponsored by the left-leaning think tank New Democrat Network.
The FCIC will complete the bulk of its investigatory work by Labor Day, Angelides said. It will then start compiling its findings, which are due by Dec. 15.
Angelides, the former treasurer of the state of California, did not say when the next public hearings would occur. But he indicated they would address subprime lending, securitization, government-sponsored enterprises and shadow banking, among other subjects. He also said the panel will likely hold public forums in which academics and other experts with knowledge of the economy and financial markets will offer their insights.
Angelides defended the methodical pace of the panel, which was created in May 2009 but did not hold its first public hearings until last month.
"We're marching to a drummer of integrity and thoroughness," he said, adding that the panel's work is still relevant, even though it is addressing a crisis that came to a head 16 months ago. "People have talked about this crisis as if it was, when in fact, it still is."
In January, the panel held two high-profile hearings. First, the body questioned the heads of Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Bank of America Corp. A day later the panel questioned state and local investigators, Attorney General Eric Holder, Federal Deposit Insurance Corp. head Sheila Bair and Securities and Exchange Commission head Mary Schapiro. Observers noted that the bankers' hearing did not generate much controversy, but Angelides, echoing earlier comments from FCIC Vice Chairman Bill Thomas, said hearings are just the "tip of the iceberg" of the commission's work.
In addition to examining the broad forces that led to the economic meltdown, Angelides said his panel will "strip back the veil" to reveal the "actions of real people and real institutions" whose practices contributed to the crisis.
"If we unveil embarrassing facts, so be it," he said.
Angelides also noted that the panel has the authority to refer criminal matters to the Department of Justice but stressed that the FCIC has "a broader mandate than to just find... perps."
"I want to emphasize that much of what happened was not illegal," he said.
The FCIC is drawing inspiration from previous government panels such as the Warren Commission, which investigated the Kennedy assassination; the Kerner Commission, which investigated the 1967 race riots; and the 9/11 Commission, which investigated the circumstances and preparedness issues surrounding the Sept. 11 attacks, Angelides said.
The panel's most crucial task may be its role in helping to restore investors' confidence in Wall Street, so Angelides said he will make its work understandable and accessible to the general public by explaining the causes of the crisis in layman's terms and posting relevant documents online.
"There is a hunger in this country to know what the heck happened," Angelides said.
He alluded to the effect the 1929 stock market crash had on a generation of Americans who avoided Wall Street investing due to their view of stocks as risky and unreliable. "We hope in the end to contribute toward restoring faith in our financial system," Angelides said.
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