Congress Scrutinizing Bear Stearns Purchase by JPMorgan

(AP Photo/Jin Lee, File)
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Capitol Hill (AP) Lawmakers are looking into the federally backed takeover of struggling investment bank Bear Stearns by rival JPMorgan chase.

The Federal Reserve is fronting nearly $30 billion to guarantee the deal in What Senate Banking Committee Chairman Christopher Dodd calls an “unprecedented arrangement.” The democrat is asking Treasury Secretary Henry Paulson and others to appear at a hearing a week from today. Dodd says the hearing will cover the fed's rationale for the deal and the impact on taxpayers.

The top Democrat and Republican on the Senate Finance Committee are also questioning the deal. They've sent letters to the leaders of both firms and government officials seeking more specifics on the transaction and what effect it may have.