Will Waxman subpoena Bernanke over Bear and BlackRock?

Will Henry Waxman, chairman of the House Oversight and Government Reform Committee, maybe even HAVE TO subpoena Ben Bernanke, The Worst Fed Head Since Greenspan™?

Well, as more and more comes out about the $30 billion line of credit to JPMorgan to buy out Bear Stearns, maybe the answer is yes. Waxman wants to know why the BlackRock financial management firm got a no-bid contract to manage this.

Well, Big Ben will tell you, Henry, that the depth of the emergency meant there wasn’t time to take bids, even if that further reflects on his already less-than-stellar reputation.

Waxman says he wants to know more about BlackRock's role in managing the money, why it received a no-bid contract and whether the company's portfolio has investments in distressed mortgages or anything that may be in conflict with its new role in managing the Fed's money during the housing meltdown.

A bit more info about BlackRock:

1. It’s 49 percent owned by Merrill Lynch. This gives credence to the story that the Street was ready to get out the long knives for Bear Stearns.
2. Despite a public protestation otherwise, one wonders if Waxman isn’t just barking up the right tree on BlackRock problems. In February, admitting it was against normal company policy to comment on rumors, BlackRock said it had no CDO exposure.