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Senator Christopher Dodd, head of the Senate Banking Committee, is corrupt, plain and simple. Senator Dodd has sponsored a mortgage bailout bill in Congress to benefit mortgage lenders and took money from one of them – Countrywide – while putting up the legislation. Details, courtesy of the Wall Street Journal:
On Tuesday, the very day he finally admitted knowing that Countrywide Financial regarded him as a “special” customer, the Connecticut Democrat also announced that he was bringing to the Senate floor a housing bailout sure to help lenders like Countrywide.
How much will Countrywide benefit from Mr. Dodd’s rescue? The Senator’s plan allows mortgage lenders to dump up to $300 billion of their worst loans on to taxpayers via a new Federal Housing Administration refinancing program, provided the lenders are willing to accept 87% of current market value. The program will be most attractive to lenders and investors holding subprime and slightly-less-risky Alt-A loans made during the height of the housing bubble in 2006 and 2007.
That legislation is bad enough. Here’s the kicker:
Meanwhile, Mr. Dodd continues to insist that, though he knew he was a “special” Countrywide customer, he didn’t think he was getting any special financial benefit. But a $75,000 reduction in mortgage payments is no small matter for anyone living on a Senate salary of $169,300. Why else would he be known around Countrywide as a “Friend of Angelo” – Angelo being Countrywide CEO Angelo Mozilo.
Yesterday, nine Senate Republicans led by South Carolina’s Jim DeMint sent a letter asking Majority Leader Harry Reid to delay consideration of Mr. Dodd’s housing bailout bill in light of its benefits for Countrywide – and Countrywide’s benefits for Mr. Dodd. That’s an excellent idea, in addition to a Congressional and Justice Department probe of Countrywide, Fannie Mae and the favors they seem to have spread around Washington. American taxpayers need to understand more about who they’re being asked to bail out here, and why.
Dodd, in effect, is going to charge American taxpayers – ME – $300 billion for a $75,000 bribe. This is corruption, plain and simple.
I call for the immediate resignation of Senator Dodd from Congress, and urge you to contact YOUR senators and representatives to ensure the mortgage bailout bill is voted down on arrival. Let lenders – and disclosure, I work for a student loan company – live with the bets they make in the marketplace.
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