The Senate passed an amendment to an anti-fraud bill yesterday that would create an independent outside commission, complete with subpoena power, to investigate the causes of the crisis on Wall Street. The amendment was written by Sen. Johnny Isakson (R-GA), but was cosponsored by, among others, Sen. Chris Dodd (D-CT)

"Through dozens of hearings at the Banking Committee, we have documented a web of negligence, regulatory failures, and other abuses that caused this crisis in our financial system, and in the broader economy," Dodd said upon passage of the measure. "It will be the responsibility of this independent commission to build upon these findings, investigating every level of regulatory failure, and sniffing out any illegal or abusive activity within the financial services industry."

The vote was an overwhelming 92-4, which isn't surprising given obvious political problems with voting against an investigation of Wall Street at this particular time. The dissenters were Sens. Jim Bunning (R-KY), Chuck Grassley (R-IA), John Kyl (R-AZ), and John McCain (R-AZ).

McCain, however, is an interesting case.

He, and Sen. Byron Dorgan (D-ND) sponsored an amendment that would create an internal select committee to investigate many of the same questions. It, too, passed last night, by unanimous consent. Dorgan said, "[w]hile I also support an outside commission, and have previously introduced legislation to establish such a commission, I believe the Senate has an important oversight responsibility that cannot be delegated."

These developments comes amid high level discussions among Congressional Democrats about the creation of an internal commission--modeled on the Pecora investigation into the 1929 collapse--to investigate the key events that preceded today's financial crisis. Dodd's staff has been largely silent on the idea of an internal commission, noting that his committee has already laid the groundwork for a thoroughgoing investigation. (Interestingly, the Pecora commission was conducted under the auspices of the Senate Banking Committee, which Dodd currently chairs.)

If the bill passes both the House and Senate with both amendments in tact, then the two commission will move forward, one outside the direct control of Congress. Democratic leaders agree that an investigation of some kind is in order have indicated some flexibility as to the exact specifications of such a commissions. Among the chief concerns are whether an external commission would enjoy subpoena power (though that concern might now be allayed) and that it could be stacked with people who lack either accountability or the incentive to investigate the issue thoroughly. One could, of course, raise similar concerns about an internal commission.

Sen. Saxby Chambliss (R-GA) also co-sponsored the Isakson amendment.