Waxman Investigates Fed's Contract with BlackRock

House Oversight Chairman Henry Waxman (D-Calif.) today requested information on the Federal Reserve's deal with BlackRock Financial Management, Inc., the firm hired to manage the portfolio backing the Bear Stearns buyout.

Waxman expressed concern that the Fed awarded a no-bid contract to BlackRock to manage $30 billion in tax revenue. The Fed's regional bank in New York made an immediate, no-bid deal with BlackRock to manage the portfolio backing its loan to JP Morgan Chase.

See Waxman's letter to Timothy Giethner, president of the Federal Reserve Bank of New York, after the jump.