On April 23, The Wall Street Journal reported that the Securities and Exchange Commission has refused a congressional request to disclose why the investigation into Bear Stearns was dropped. The purpose of that investigation was to determine if the firm harmed investors by improperly valuing complex debt securities.
In a letter dated April 2, the ranking member of the Senate Finance Committee, Senator Charles Grassley, requested details from the SEC about the circumstances surrounding the Bear Stearns probe. The SEC cited confidentiality in refusing to provide any details about its decision regarding the investigation. “The Commission does not disclose the existence or nonexistence of an investigation or information generated in any investigation unless made a matter of public record in proceedings brought before the Commission or the courts,” SEC chairman Christopher Cox explained.