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.

“This evening's meeting is a testament to the extremely serious challenges facing our economy. Tonight, the Administration put forward some constructive ideas, and I look forward to receiving more details. Bad lending practices and lax oversight are the root cause of this crisis. As such, a comprehensive and constructive proposal must include relief for millions of American homeowners facing foreclosure. I am committed to working with the Administration and my Democratic and Republican colleagues in Congress to develop robust solutions to these serious problems.”

“I appreciate Chairman Bernanke and Secretary Paulson informing me of their decision regarding AIG.  This decision is a clear sign that the financial crisis – which is a direct consequence of this Administration’s neglect and wayward economic policies – continues to deepen.  Actions that were inconceivable just days ago are now occurring in a manner and at a pace that is certainly cause for concern.  The Banking Committee will continue to play a constructive role in resolving this crisis.  In order to do so, we must ask some crucial questions on behalf of the American people: how will this action affect taxpayers – who have already been asked to commit hundreds of billions of dollars to help stabilize large financial institutions?  To what extent will it calm the markets – or just add to the uncertainty?  And does this Administration have a coherent strategy to put our economy on stronger, steadier footing?  I look forward to hearing the Administration’s response to these questions at hearings I will hold in the coming days.