The House Judiciary Committee head sent out a warning to the Obama administration in a recent hearing that a possible battle with the Justice Department will happen if they pass on documents regarding its multi-billion dollar settlements with major banks.
Republican lawmakers are inquiring what the $36.6 billion worth of settlement was used to pay for, and are concerned on how some of the funds were used to support left-leaning community groups.
Settlements with major banks such as Citigroup Inc. and J.P. Morgan Chase &Co. resolved claims that such firms misused mortgage-backed securities that led to a financial crisis in 2008.
Rep. Bob Goodlatte, the committee chairman, aired out his concerns on how the department may end up subverting Congress budget authority by making use of settlements to support activist groups.
Goodlatte also mentioned that officials have yet to surrender documents describing how consumer relief conditions were negotiated.
Geoffrey Graber of the Justice Department said his agency is still in the middle of looking into the request.