Lehman Brothers misled public, SEC failed in oversight, report finds

On Capitol Hill today, the financial crisis -- and how to prevent it from happening again - was the focus of several hearings. The House Financial Services Committee looked at a 2,000-page report on the 2008 collapse of Lehman Brothers.

The day-long hearing consisted of four panels, including Treasury Secretary Tim Geithner, Federal Reserve Chair Ben Bernanke and SEC Chair Mary Schapiro, who became chair in January 2009. Schapiro said "vigorous regulation and a new culture and approach" are necessary.

"The examiner’s report raises serious questions about the oversight of Lehman’s liquidity pool asset valuation and its risk related internal control…It appears there was insufficient follow up on issues that should have raised concerns."

The report, released last month by court appointed examiner Jenner & Block, said Lehman "painted a misleading picture of its financial condition.” The firm also puts blame on the SEC. Partner Anton Valuukas said the SEC stood by "idly" rather than fulfilling its mission to "protect investors."