Citing a lack of time, Senate Judiciary Committee Chairman Paul Sarlo (D-Wood-Ridge) has told Senators that he will not call the "Lehman Three" to appear at their Senate confirmation hearings. Sarlo wants to avoid Republican Senators questioning the three former Lehman Brothers executives.
The State Investment Council has lost nearly $25 billion in 2008, with the state pension fund dropping from $82 billion last July to $57.7 billion as of last month. Alleging fraud and misrepresentation, the Corzine administration filed a lawsuit against nine top executives of the now-bankrupt Lehman firm last month. The State Investment Council bought $182 million in Lehman securities last April for the state pension fund – a move that has caused State Sen. Joseph Pennacchio (R-Montville) to demand an investigation.
But despite the losses, Corzine renominated Jose Claxton, Erika Irish-Brown and Montgomery Cerf to the NJSIC for new terms. All three were executives at Lehman, although they are not parties to the state lawsuit. The three are awaiting Senate confirmation, and the Judiciary Committee has not yet scheduled hearings on their nominations.
Nominees are not required to appear before the Judiciary Committee before the panel votes on their confirmation.