All of our financial elites are Oh! So Innocent! Eric Holder and Barack Obama agree.

It really is incredible to see such a concerted effort to rewrite history in front of our faces. There is not much ambiguity in the story of the housing bubble. The private financial sector went nuts. They made a fortune issuing bad and often fraudulent loans which they could quickly resell in the secondary market. The big actors in the junk market were the private issuers like Goldman Sachs, Citigroup, and Lehman Brothers. However, George Will and Co. are determined to blame this disaster on government “compassion” for low-income families.

Watching the MOTUs as their financial services universe shakes and shudders around them reminds me of the five stages of death and dying. There’s lots of denial and anger coming out of the MOTUs, and hints of bargaining, but little sign of depression and acceptance. But it’ll come . . .

Repo 105? What’s that? It’s immaterial, and besides, Ernst & Young says it’s great. And we told you we were screwing around with our balance sheet. So go away, silly investor. We took your money fair and square.

The Lehman Brothers bankruptcy case grinds along. Their financials sucked, it’s JPMorgan’s fault, and they screwed thousands of Hong Kong residents. No one is responsible for anything.

The bankruptcy estate of Lehman Brothers sued JPMorgan for the actions JPMorgan took in the weeks prior to bankruptcy. Lehman alleges that JPMorgan sucked up all its assets to be held as collateral, forcing it into a disorderly bankruptcy that caused unsecured creditors massive losses. Why? For money and business opportunities. What better way to grow than to eat a competitor?

The bankruptcy estate of Lehman Bros. claims that JPMorgan forced Lehman into a sudden bankruptcy, to save itself money it might have had to pay Lehman on derivatives. It’s another example of the wolves of Wall Street eating their own.

FDL Contributor Bill Black scorched everyone with his testimony on the failure of Lehman Brothers when he testified before the House Financial Services Committee today.

Today, starting at 11 pm, the House Financial Services Committee will begin hearings on the collapse of Lehman Brothers and its role in the financial crisis. The hearing will be broadcast live on C-SPAN 3.

Expected to testify: a who’s who of the world of financial regulation. Former chief executive of Lehman Brothers, Dick Fuld, Treasury Secretary Tim Geithner, Securities and Exchange Commission Chair Mary Schapiro, and Federal Reserve Chairman Ben Bernanke are all expected to testify before the committee.

FDL will be monitoring the hearing and will report on and/or begin liveblogging the hearing if something of note happens.

[Ed Note: A liveblog by any other name. . . Scarecrow is doing a great job of keeping up with all the action in the comments below.]

I don’t know how you keep hearing these stories of fraud – accounting fraud, investor fraud, what have you – without the Justice Department getting involved. We want to make banking boring again, and the simplest way to do that is by making absolutely clear that anyone who takes these kinds of risks and plays these kinds of games will go to jail for a long time. If we had a culture of accountability in Washington that would already be happening.