Responding to inadequate action by the Treasury Department to identify and address currency manipulation by our nation’s largest trading partners, Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Banking Committee, today introduced the Currency Reform and Financial Markets Act of 2007 to level the playing field for American workers and businesses.  The Senators intend to work with their fellow Banking Committee colleagues to ensure that the legislation is passed through Committee in a timely manner.  

“At a March 2007 hearing, the Banking Committee documented the regulatory foot-dragging by the Federal Reserve Board (FRB) and other federal regulators in addressing predatory practices in the subprime market.  Indeed, at that hearing, the Federal Reserve acknowledged that not enough had been done.  Earlier this week, we learned that the former Chairman of the FRB explicitly rejected a proposal in 2000 from Edward Gramlich, one of his Board colleagues, that would have extended oversight of the Federal Reserve to a significant segment of the subprime market. 

Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Banking Committee, today expressed disappointment upon receiving the bi-annual International Economic and Exchange Rate Policy Report from the U.S. Treasury Department.  Specifically, the Senators were concerned that the report did not identify China as a currency manipulator, an oversight that has adverse effects on the American manufacturing industry, the U.S. trade deficit, and our overall competitiveness.  Yesterday, Senators Dodd and Shelby announced legislation which will, among other things, create tough, new authority for both the Treasury Department and the Congress to act to provide a level playing field for U.S. manufacturers and workers.  The legislation would also tighten the definition of currency manipulation to provide for greater clarity and to prevent ambiguity or delay in addressing the problem. 

...to Protect U.S. Jobs and Combat China Currency Manipulation

June 12, 2007

Washington, D.C. – Responding to years of inaction by the Treasury Department to identify and promptly adjust currency manipulation by our largest trading partners, Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Banking Committee, today announced that they will introduce legislation to level the playing field for American workers and businesses. 

Announces Legislation to Address Problems in Private Student Loan Market

June 8, 2007

Washington, D.C. – Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today announced that he will introduce legislation to help students and their families afford college.  Chairman Dodd’s legislation would implement needed reforms in the private student lending market – the fastest-growing segment of the $85 billion student loan industry – and will help ensure that all students wishing to pursue a higher education are able to obtain the most competitive and affordable student loans.

“I am hopeful that President Bush’s decision to recommend Robert Zoellick to World Bank members as the next president of the World Bank will restore the integrity and honor to the institution that was eradicated by Paul Wolfowitz’s flagrant disregard for ethical standards.  The importance of the World Bank’s mission cannot be overstated – the institution is influential in reducing poverty and promoting development and sound governance in the many nations in which it operates.  The head of such a premier organization must share a deep belief in these goals, and must have a steady moral footing in order to navigate the maze of challenges that come with the position.  I hope that Mr. Zoellick brings the strong leadership and moral principles needed to help the Bank reestablish itself.”

"One of the very first actions that I undertook as Chairman-elect of the Banking Committee in December 2006 was to write a letter with then-Chairman Shelby to the Treasury Secretary on the occasion of the first Strategic Economic Dialogue (“SED”).  In January 2007, I chaired a hearing with Secretary Paulson on exchange rates and the SED.  At that hearing, Treasury Secretary Paulson testified that the SED is the “best chance to get some progress [on the currency issue].”  The second session of the SED concluded in Washington this morning and I am eager to learn more about any progress made on both the currency and market access issues that the hearing today will address.

Today the Connecticut delegation sent a letter to the Comptroller General of the Government Accountability Office (GAO), David M. Walker, requesting information about the recent spike in gasoline prices. Senators Chris Dodd (D-CT) and Joe Lieberman (D-CT), along with Representatives Rosa DeLauro (D-CT), Chris Murphy (D-CT), Joe Courtney (D-CT), John Larson (D-CT), and Chris Shays (R-CT), requested that the GAO investigate the effect of the under-utilization of oil refineries on gas prices. By operating well below the refining capacity, the oil industry could create an artificial shortage, thereby driving gas prices higher. The delegates’ letter aims to ensure that any manipulation of the market price of gasoline, as prices have increased by nearly a dollar a gallon since the beginning of the year, is brought to light.

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today sent a letter to federal regulators commending their decision to extend the protections and underwriting requirements established by the Nontraditional Mortgage Guidance to subprime borrowers, and urging them to finalize the guidelines as quickly as possibly.  The guidelines will help loan servicers ensure that prospective homeowners understand and are able to afford the terms of the adjustable rate mortgages being offered to them, as borrowers often experience severe payment shocks when these types of mortgages reset.  The letter also urges the regulators to encourage servicers to abide by the Statement of Principles – aimed to provide long-term, affordable alternatives to homeowners facing foreclosure – that leading stakeholders agreed to after Chairman Dodd convened a Homeownership Preservation Summit last month.

Senator Chris Dodd, D-Conn., Chairman of the Senate Committee on Banking, Housing and Urban Affairs, and Senator Richard Shelby, R-Ala., ranking member of the Committee,  yesterday wrote to Treasury Secretary Hank Paulson  emphasizing the need to eliminate China's unfair trade practices through both dialogue and action.  China’s ongoing intervention to keep the yuan undervalued and discriminatory treatment of foreign financial services firms have contributed to the loss of approximately three million manufacturing jobs and to the record high U.S. trade deficit.