The report criticizes Lehman's use of an accounting trick called "Repo 105" to make its books look better.
Dodd released a draft bill on Monday aimed at preventing future Wall Street bailouts. The rule would create a new consumer regulator housed inside the Federal Reserve to ensure consumers get a fair shake with mortgages and credit cards. It would also trim the ranks of federal banking regulators and clarify the duties of remaining agencies.
0:00/5:04Crisis detectives scope bank accountingIn a speech on Monday, Senator Ted Kaufman, D-Del., also called on President Obama to initiate a criminal and civil investigation of Lehman Brothers.
"It is high time that we return the rule of law to Wall Street, which has been seriously eroded by the deregulatory mind set that captured our regulatory agencies over the past 30 years," he said.
He called for an investigation not only of Lehman executives and its board of directors, but also its accounting firm Ernst & Young and foreign banks involved in the "Repo 105" transactions.
Dodd is retiring at the end of his current term after 30 years in the Senate. Kaufman, who replaced Joe Biden when Biden assumed the vice presidency, will not seek re-election; his successor will be decided in a special election this year.
Bernanke fights Senate’s bid to reduce oversightFinancial reform bill coming from Democrats
