“The economic crisis facing our country is deepening, as we saw over the weekend with the failure of Lehman Brothers and the sale of Merrill Lynch.  To fully understand the implications of these events, we need to learn more about the Administration’s involvement, and its plans going forward.  At the Treasury Secretary’s request, I have postponed tomorrow’s hearing.

“Millions of Americans are struggling to make ends meet as unemployment rises, home values plummet, and everyday necessities like food and gas cost more than ever before.  The Banking Committee has played a vital role both in revealing the pattern of lax regulatory oversight that helped to create this financial crisis, and in addressing related economic problems by crafting comprehensive legislation passed earlier this year.  As Chairman, I will continue to work on solutions to help Americans weather this storm, including strengthening the housing sector, developing a second stimulus package, and restructuring the regulation of the financial sector.”

Today, Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, issued the following statement on Home Mortgage Disclosure Act data released by the Federal Reserve, which showed that denial rate differences based on race widened from 2006 to 2007:

“This data is further proof of a disturbing and continuing trend of unfair lending practices in our country.  At a time when turmoil in the mortgage markets caused by unfair and unsound lending practices is making credit less available to all Americans, minority borrowers are confronted with significant racial and ethnic disparities when trying to purchase a home.  The Banking Committee will continue to focus on how to address discriminatory lending practices and end these disparities in order to ensure that homeownership is equally available to all Americans.”

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement:

“There are still many unanswered questions about the Administration’s plan, and Americans deserve to know if this unprecedented proposal will help keep mortgages affordable, stabilize the markets, and protect taxpayer interests.  Furthermore, we need to understand the circumstances which led the Administration to change course.  Just weeks ago, Secretary Paulson testified that he thought he would never use this authority – a message he reiterated until very recently.

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement:

“I spoke with Secretary Paulson yesterday and was advised of the Administration’s intent to use its new authority to act in connection with the GSEs.  Any government action must help to strengthen our economy, which is suffering a crisis brought on by the Administration's failure to stop predatory lending and promote sound economic growth. The GSEs must remain active and aggressive in the mortgage markets, as these companies play a critical role in making affordable mortgages available to hard-working Americans.  Any intervention also must minimize the cost to American taxpayers, and should not put other financial institutions at risk.  As the final aspects of this plan take shape, I look forward to speaking with Secretary Paulson, Chairman Bernanke, and other officials to ensure that their actions further these important objectives.”

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement on the increase in the unemployment rate to 6.1%, the highest it has been in five years:

“Today’s data is cause for renewed concern about the state of our economy.  More and more Americans are losing their jobs while the costs of fuel, food, and other everyday necessities continue to rise.  Congress put forth a significant effort to strengthen our economy with a stimulus package and comprehensive housing legislation passed earlier this year.  But more must be done to help Americans who are struggling to make ends meet.  Our nation needs a new, robust economic policy, including extending unemployment insurance benefits; increasing funding for worker training programs; providing tax relief for working families; and investing in our nation’s infrastructure, which will create thousands of new jobs and grow our economy.  In the coming months, the Banking Committee will remain focused on ways to provide long-term financial security and opportunity for all Americans.”

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today spoke on the Senate floor on the state of our nation’s infrastructure and the importance of long-term investment in our roads, bridges, mass transit, drinking water, and wastewater removal systems.  Dodd’s speech comes on the eve of the one-year anniversary of the tragic I-35 bridge collapse in Minneapolis. Tomorrow also marks one year since Dodd introduced the National Infrastructure Bank Act along with Senator Chuck Hagel (R-NE).  Dodd has held two hearings on the legislation, which has 12 co-sponsors.

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today issued the following statement after President Bush signed into law the Housing and Economic Recovery Act, which Dodd authored along with Senator Richard Shelby (R-AL):

“Today marks an important change in the federal government's response to the economic strain being felt by millions of Americans across the country and our financial markets.  This is the most sweeping housing legislation since the Great Depression, representing a turning point in our country's commitment to economic growth and affordable housing, and providing relief to homeowners and communities across the country.  I congratulate the President for signing it, and I am committed to ensuring that this law is implemented effectively and expeditiously, and that it fulfills its promise to prevent foreclosures, restore home values, stabilize our housing markets, and create economic growth.”

Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs, today announced that the Senate passed the Housing and Economic Recovery Act by a vote of 72-13.  This legislation is expected to help hundreds of thousands of Americans who are struggling to keep their homes, as well as countless homeowners and communities who are already experiencing the devastating effects of foreclosure.  The legislation also contains comprehensive reforms to our nation’s housing sector, including the creation of a strong, new regulator for the government-sponsored enterprises.  In response to recent turmoil in our financial markets, the bill also includes provisions requested by the Treasury Department to restore confidence in Fannie Mae and Freddie Mac.

Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, today formally announced an agreement with the House of Representatives and the Administration on comprehensive legislation to address the current housing crisis and strengthen our economy.  Dodd and Shelby also commended the House of Representatives for passing the legislation, which was sent to the House from the Senate last week and will now return to the Senate for consideration.

“We have been working diligently for months on legislation to address the housing crisis.  Last week we sent legislation to the House.  Since then, we have been engaged in extensive and largely fruitful discussions with our counterparts in the House of Representatives, as well as Administration officials. We remain optimistic about the prospects for this legislation.”