He said that the "Prompt Corrective Action Law" passed after the Savings and loan crisis mandated that ailing banks should be put into receivership.

Black stated that Timothy Geithner was engaged in a cover-up, and that the administration did not want people to understand what went wrong or how bad the banking situation was.

[7] On April 20, 2010, Black testified before the House Financial Services Committee in a hearing titled "Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner.

"[8] He testified about the role that Alt-A mortgages, what he called "liars' loans," on residential real estate played in the downfall of Lehman Brothers.

"[10][8]: 122–148 On the same page in his prepared testimony Black referenced an article from the Denver Post dated September 16, 2008, the day after Lehman filed for bankruptcy.

The article reported on the uncertain fate of Aurora Loan Services, which was based nearby, and quoted Lehman's chief financial officer as saying the previous week that, "The majority of our write-downs were in Alt-A driven by an increase in.. .