I read in the news today that as chairman of the House Oversight Committee, you sent a letter to NY Fed President Tim Geithner to answer questions about Blackrock “no-bid” contract in managing the portfolio acquired by the Fed after the Bear Sterns bailout.

As a registered voter in your district, I am very concerned that these hasty backroom deals will primarily benefit Wall Street executives in New York, leaving your constituents, along with the rest of American citizens, with the proverbial short end of the stick.

I have many issues with the entire Bear Sterns deal. As has been reported by Reuters, the Fed approved the deal between JPMorgan and Bear Stearns under Depression-era laws allowing it to do so under "unusual and exigent circumstances." This provision, however, requires an affirmative vote of not less than 5 members of the board.

Currently, there are only five members on the board since there are presently two vacancies, but only four approved the measure as Governor Frederic Mishkin was not present, according to the Federal Reserve.

The law does allow for members to be contacted through any electronic means, including by telephone and e-mail. With current technology allowing communication in even the most remote areas of the world, there is no legal justification why quorum was suspended for a decision that has such broad precedent setting ramifications.

Additionally, during Senate Banking Committee testimony, Fed Chairman Ben Bernanke stated unequivocally that this deal was necessary to protect the financial market from a full on collapse due to systemic risk. However, JP Morgan’s Chairman Jamie Dimon, whose firm served as clearinghouse for Bear Sterns and held extensive OTC derivative contracts, stated that JP Morgan’s direct exposure on the day of collapse was minimal.

Well, either Mr. Bernanke either greatly exaggerated the systemic risks, or Mr. Dimon perjured himself.

Considering that all retail investor’s money is held as segregated funds, either through individual brokerage or retirement accounts, and is therefore also not at risk, it is again difficult to see the urgency of a bailout that should have been far more carefully debated.

In conclusion, I urge you to continue to fully investigate this matter to ensure the all laws were followed in making this decision, and that American taxpayers’ money is being wisely spent.