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.”

Senator Chris Dodd (D-CT) joined Senator Jack Reed (D-RI) and other Senate Democrats yesterday in their efforts to extend unemployment benefits to 46 weeks by co-sponsoring the Unemployment Compensation Extension Act of 2008. 

This legislation would provide an additional seven weeks of unemployment insurance for individuals who have exhausted their benefits.  The bill would also provide an additional 13 weeks of benefits to unemployed workers in states that have been hit particularly hard by the economic downturn and have unemployment rates above 6 percent. 

Senator Chris Dodd (D-CT) released the following statement today following the announcement that the Administration has agreed to release the remaining contingency funds available for the Low Income Home Energy Assistance Program (LIHEAP).

“I’m pleased that the President has finally heeded the request that my colleagues and I have been making for months and released all available LIHEAP funding. Low income families in Connecticut received little more than $500 last winter to help with heating bills that could be as high as four times that amount this year. This $7 million in additional heating assistance will go a long way toward helping Connecticut’s low income households heat their homes this coming winter,” said Dodd.

“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. 

Download the podcast here:

Senator Chris Dodd, Chairman of the Senate Committee on Banking, Housing and Urban Affairs, held a press conference today to discuss the economic crisis and recent turmoil in the markets. Click the link to the right to hear a recording of his opening statement. A transcript is below.

“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.”