“The Federal Reserve Board’s decision illustrates their commitment to using the tools available to them to help provide growth and liquidity to our economy.  But the Fed cannot go it alone – trying to fix these economic problems solely with rate cuts is like trying to follow a recipe with only some of the ingredients.  The Administration should be equally aggressive in responding to the trouble in the mortgage markets – which is the heart of the overall economic crisis.  If they are questioning the need for action, they need to look no further than this morning’s economic data, which indicated that the economy is struggling and the recession in the housing market is continuing, while other data shows that consumer confidence is at historic lows.  That is why I am working on legislation, the HOPE for Homeowners proposal, to provide real assistance to distressed homeowners, help stabilize our markets, and restore the flow of credit.”

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today held a hearing with federal bank regulators on “The State of the Banking Industry.”  Dodd emphasized the important role that regulators play in securing credit in our economy, and in protecting American taxpayers who trust their deposits to be safe.  In outlining the current financial strain on American consumers, entrepreneurs, and lenders, Dodd pointed to the failure of the Federal Reserve earlier this decade for not playing a more active role in preventing the predatory lending practices which were largely responsible for the meltdown in the mortgage market and, in turn, the economic downturn we face now.  

The Committee will come to order.  This morning’s hearing is entitled “Reforming the Regulation of the Government Sponsored Enterprises.”  While this is the first meeting on this topic in the 110th Congress, I want to acknowledge that the Committee has established a substantial record on these issues which was developed through a comprehensive series of hearings organized by Senator Shelby when he was Chairman of this Committee.  He has shown important leadership on this issue.

Senator Chris Dodd (D-CT), Chairman of the Committee on Banking, Housing, and Urban Affairs, today issued the following statement on Bush’s misguided budget proposal:

“The budget fails to take into account the needs of low- and moderate-income families all across our nation.

As the nation experiences a dramatic economic slowdown and Congress considers economic stimulus packages to present to the President, Senator Chris Dodd (D-CT), Chairman of the Banking, Housing, and Urban Affairs Committee, held his first hearing of the year on the root cause of the current problems in the economy: the tumult in the mortgage markets and the rising number of home foreclosures.  Dodd focused the hearing on both short- and longer-term solutions to address the housing crisis, based on the premise that the mortgage meltdown is largely responsible for the current economic downturn. 

Senator Chris Dodd (D-CT), Chairman of the Banking, Housing, and Urban Affairs Committee, today issued a statement in response to the Federal Reserve Board’s announcement to cut interest rates: 

“Today’s interest rate cut by the Federal Reserve and this morning’s data showing dramatically slower economic growth indicate that the problems that originated in the sub-prime mortgage market continue to reverberate through the financial system and the broader economy. While the Fed’s recent actions are encouraging, there are serious problems in our economy that need both long- and short-term solutions. 

Senator Chris Dodd (D-CT), Chairman of the Committee on Banking, Housing and Urban Affairs, today issued the following statement in reaction to the Bureau of Economic Analysis’ (BEA’s) announcement of the 4th Quarter Gross Domestic Product (GDP) numbers for 2007, which indicated 4th quarter growth slowed to 0.6%, a sharp contrast with the almost 5% growth from the previous quarter:

Senator Chris Dodd (D-CT), Chairman of the Banking, Housing, and Urban Affairs Committee, today continued his efforts to address the recent weakening of the U.S. economy by meeting with Treasury Secretary Henry Paulson to discuss stimulus package proposals and efforts to reduce record foreclosure rates which are forcing people out of their homes.  Dodd, who has tied the recent economic downturn to the foreclosure crisis, has urged leaders in Congress and the Administration to incorporate provisions that deal with the housing crisis in any stimulus bill they present to the President. 

Senator Chris Dodd (D-CT) this week requested that the developing economic stimulus package include additional Low-Income Home Energy Assistance Program (LIHEAP) funding for low-income families.  In a letter to Majority Leader Harry Reid (D-NV), Minority Leader Mitch McConnell (R-KY), Senate Appropriations Committee Chairman Robert Byrd (D-WV), and Appropriations Ranking Member Thad Cochran (R-MS), Senator Dodd and his colleagues recommended an additional $3.62 billion for the program to support low income families in bill payment assistance, energy crisis assistance and weatherization and energy-related home repairs, as well as an additional $500 million in emergency funds.

After proposing his idea of a Federal Homeownership Preservation Corporation for inclusion in the stimulus package to Majority Leader Harry Reid earlier in the week, Senator Chris Dodd (D-CT), Chairman of the Banking, Housing and Urban Affairs Committee, will discuss with Treasury Secretary Henry Paulson tomorrow morning, issues of importance over which they both preside, including the vitality of the financial markets, the health of the economy, the stimulus package proposals and efforts to reduce record foreclosure rates.