Dodd, Mortgage Bailout Bill Under Fire

The Senate is debating a huge mortgage bailout bill this week amid fresh allegations that certain high-powered senators and former cabinet officials received preferential treatment from mortgage giant Countrywide Financial on their personal loans. Sen. Christopher Dodd, Chairman of the Senate Banking Committee and chief sponsor of the mortgage compromise legislation, received two below market loans from Countrywide in 2003 under its "friends of Angelo" program. "Angelo" is Countrywide CEO Angelo Mozillo. After first denying it, Dodd has admitted that he knew he was receiving special treatment on his loans as a "V.I.P.," but continues to deny that he sought any deal that would benefit him financially.

But Dodd's troubles are growing, and may eventually wind up killing the mortgage bailout bill he co-authored with Alabama Republican Senator Richard Shelby. A new examination of Dodd's campaign contributions reveals that since Dodd became chairman of the Banking Committee in 2007, he has received over $70,000 in contributions from Bank of America and its high-level employees. Bank of America recently bought Countrywide Financial and all of its existing loans. Since Countrywide held the most sub-prime mortgages at risk of default, Bank of America is potentially exposed to huge losses, unless a government bailout moves those risky loans off Countrywide's balance sheet. Dodd has written such a bailout, and some are now questioning whether his low interest loans and Bank of America's campaign money influenced that legislation.

Dodd is not the only Senator to have received contributions from Bank of America. Democratic presumptive nominee for president, Sen. Barack Obama, and his former rival Sen. Hillary Clinton, both received more money than Dodd from Bank of America while Republican nominee, Sen. John McCain, received slightly less. All told, Bank of America's political action committee and employees contributed over $1.3 million to presidential and congressional candidates. But Dodd is in the best position to help Bank of America in the short term.

The White House has issued a surprise veto threat on the legislation, reversing its earlier positive comments on the compromise. The Administration now says that it objects to the funding source in the Senate bill. But the controversy surrounding Dodd's loans and cut-rate deals given to other prominent government officials may be playing a role in the Administration's reversal. A veto of the legislation could allow time for a more thorough examination of the relationships between Banking Committee members and the mortgage industry. More revelations may force the Senate Ethics Committee to initiate an investigation of Dodd and perhaps other Senators' mortgage deals. Sen. Kent Conrad (D-ND) has also been implicated in the growing scandal. President Bush is already adverse to a large-scale government bailout of mortgage speculators and irresponsible borrowers. He will certainly not hurry to sign a bill that primarily benefits a company that may have bought access to powerful members of Congress.

Recent Comments

(Page 1 of 3)
New Users

Current Users

Add your comments:

Latest Elections News Headlines

    No current headlines. Please try again later.

    Political Machine Photo Galleries

    Candidates' Favorite TV Shows
    Democrats Debate in Las Vegas
    Laura's Trip to Middle East
    Political Sex Scandals
    The Not-So Traditional 2008 Candidates
    Al Gore's Ups and Downs
    Spokespersons!
    Candidate Spouses

    Politics Video

    Will.I.Am on Obama's Internet Empire

    Will.I.Am on Obama's Internet Empire

    Will.I.Am ponders on how Obama and the internet have changed politics forever. (Oct. 3)
    Mo Rocca 180: Dolly vs. Abe

    Mo Rocca 180: Dolly vs. Abe

    Dolly Parton or Abe Lincoln? You must choose!
    Reid: Presidential Politics Harming Bailout Plan

    Reid: Presidential Politics Harming Bailout Plan

    Senate Majority Leader Harry Reid said Friday that the time has come for presidential politics to leave the negotiating table as lawmakers work to reach an agreement on a financial bailout plan. (Sept. 26)
    Dems Blame McCain for Bailout Deal Breakdown

    Dems Blame McCain for Bailout Deal Breakdown

    Sen. John McCain's self-portrait as a bold leader willing to set politics aside to save an endangered financial bailout plan took a pounding Thursday from top Democrats and even some fellow Republicans. (Sept. 25)
    Street Team '08: Pigskin Politics

    Street Team '08: Pigskin Politics

    A football game is the last place you'd expect to find political proselytizing, but this year Democrats are ready to make a hail mary pass in Idaho. Produced by Brian Rich of Idaho for MTV's Choose or Lose Streat Team '08 at chooseorlose.com. (Sept. 25)
    « See More Politics Video
    Register to Vote with Declare Yourself

    Declare Yourself is a campaign that encourages young Americans to register and vote.

    REGISTER TO VOTE NOW AT:
    www.declareyourself.org