No confirmation hearings yet on the 'Lehman 3'

The renomination of the "Lehman Three" to the New Jersey State Investment Council (NJSIC) is moving slowly, since just one of the three former Lehman Brothers executives reappointed by Gov. Jon Corzine has cleared Senate signoff yet.  NJSIC has lost nearly $25 billion in 2008, with the state pension fund dropping from $82 billion last July to $57.7 billion as of last month.

Alleging fraud and misrepresentation, the Corzine administration filed a lawsuit against nine top executives of the now-bankrupt Lehman firm last month.  The State Investment Council bought $182 million in Lehman securities last April for the state pension fund - a move that has caused State Sen. Joseph Pennacchio (R-Montville) to demand an investigation.

But despite the losses, Corzine renominated Jose Claxton, Erika Irish-Brown and Montgomery Cerf to the NJSIC for new terms.  All three were executives at Lehman, although they are not parties to the state lawsuit.  The three are awaiting Senate confirmation, and the Judiciary Committee has not yet scheduled hearings on their nominations. The Judiciary Committee could hold vote on the Claxton nomination separately, but since the Lehman Three remain in holdover status, the Senate is likely to wait - they are in no rush - and consider all three as a package.

Republicans have the option to use senatorial courtesy on the Lehman Three: all live in counties represented by GOP Senators.  Senate Minority Leader Thomas Kean, Jr. (R-Westfield) has signed off on Claxton, a Summit resident.  State Sen. Gerald Cardinale (R-Demarest) has not signed off on Irish-Brown, who loves in Teaneck, and State Sen. Kevin O'Toole (R-Cedar Grove) has signed off on Cerf, a resident of Montclair.

Additionally, State Sen. Ronald Rice (D-Newark) has not given his sign off on Cerf, and State Sens. Paul Sarlo (D-Wood-Ridge), the Senate Judiciary Chairman, and Robert Gordon (D-Fair Lawn) have not signed off on Irish-Brown.