The breadth of the Treasury proposal is extraordinary: the Department is asking for $700 billion to purchase any asset without any transparency as to the process; without any oversight by any court or administrative agency; and without any commitment to helping homeowners with troubled mortgages. Senator Dodd has offered a number of proposals that will address these concerns, as follows:

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today released the following statement after receiving a proposal from the Administration on how to address our economic crisis:

“At this critical moment in time, we are working as expeditiously as we can to help stabilize the economy in a manner that protects taxpayers and promotes homeownership.  I have spoken with Secretary Paulson, and am working with my Democratic and Republican colleagues in the House and Senate.  The stakes could not be higher, and there is no time to waste, but I am hopeful that we will be able to achieve these important objectives.”

Senate Banking Cmte. Chairman Sen. Chris Dodd (D-CT) convened a meeting of the Committee members and held a press conference to discuss the state of the economy and the Administration’s proposal as presented to Congressional leaders.

“I am pleased that the Federal Reserve is now taking steps to issue new rules for mortgage lending and to improve oversight of our financial system.  As documented by the Senate Banking Committee, it was the lack of regulatory will, not lack of regulatory authority, that contributed to the current credit crisis.  While the Fed and Treasury promote ideas to strengthen our markets in the long-run, it is my hope that they and my Senate colleagues will continue to support more immediate solutions for the economic problems facing Americans today.  In addition to helping hundreds of thousands of Americans keep their homes, the Senate housing bill will provide for the improved oversight of government-sponsored entities and help restore liquidity to the mortgage markets that Chairman Bernanke and Secretary Paulson called for today.  The financial markets cannot return to normal without strengthening the well-being of homeowners and consumers who participate in those markets every day.  Going forward, the Committee will examine regulatory proposals to ensure that regulators fulfill their mandate to ensure financial security for consumers and investors, as well as large financial institutions.”

Senator Chris Dodd, Chairman of the Senate Committee on Banking, Housing, and Urban Affairs released the following statement today on the Memorandum of Understanding (MOU) that was entered into by the SEC and Fed.

"It is my hope that the MOU will result in improved supervision of investment banks and bank holding companies, and strengthen our financial markets for investors and our nation's economy.  It is important to note that the MOU does not grant any new authority to either agency, nor does it affect the ability of the Congress and the Senate Banking Committee to oversee regulated institutions and markets.  I am pleased that the MOU seeks to achieve its important objectives while leaving consideration of any broader reforms to our financial regulatory landscape to Congress-- issues that the Senate Banking Committee will begin to examine in greater detail over the coming weeks and months."

Senator Chris Dodd (D-CT) today delivered the following remarks at a Senate Foreign Relations Committee hearing entitled “Sovereign Wealth Funds: Foreign Policy Consequences in an Era of New Money.” Dodd is a senior member of the Foreign Relations Committee and the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, which has jurisdiction over foreign investment. The Banking Committee held the first Congressional hearing on sovereign wealth last year, and has undertaken several oversight initiatives, including convening another hearing in April to evaluate the regulation of these funds. In addition, last year Dodd passed bipartisan legislation to reform procedures for assessing the national security implications of foreign investments in the United States.

“The President and his advisors recently put up $30 billion of taxpayer funds to help one company on Wall Street.  That may or may not have been appropriate – I intend to investigate the deal at a Banking Committee hearing that I will chair on Thursday.  But this much is true: if the President and his advisors can find $30 billion to help one company on Wall Street, they can surely find a way to help millions of Americans facing higher mortgage payments and falling home prices. 

“The Federal Reserve Bank’s latest action underscores the magnitude of the crisis facing our mortgage and credit markets.  While the Federal Reserve has acted boldly, the agency is rapidly exhausting the weapons in its arsenal.  For its part, the Administration has offered only timid measures that have done little to help families keep their homes or restore confidence to financial markets.  It is time for the Administration to embrace a more comprehensive, bold, and effective approach that goes to the heart of the current financial crisis – the mortgage markets.  Last week, I announced legislation that will provide real assistance to distressed homeowners, help stabilize our markets, and be a source of much-needed liquidity.  The legislation would provide government insurance to refinance mortgage loans and restore the flow of credit in the markets.  Until we help the people on Main Street, the problem on Wall Street will not be resolved.  I intend to work in a bipartisan fashion, along with the Federal Reserve and the Administration, to move the legislation.”