Nothing To See Here. Move Along

Give Senator Christopher Dodd credit for nerve. 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.

 

Even for the loans Countrywide has already packaged and sold, the company would still benefit from the bailout. That's because Countrywide continues to service the loans, and every loan that goes bad means increased costs for the servicer.

Wow, So much for “getting rid of the culture of corruption” eh Nancy Pelosi?  You now have TWO possibly corrupt members of Congress on your watch (William Jefferson is the other) and you’ve done NOTHING about it?  As for Dodd?  He can’t possibly think that people wouldn’t notice this “quid pro quo” can he?

This is a BLATANT conflict of interest at best, and a sign of corruption at worst.  If Dodd was a man of honor, which it appears he’s not, he’d recuse himself from all of this to avoid the obvious conflict of interest.  Even Republicans have noticed.

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.

Of course, they are asking King Democrat Harry Reid, so don’t hold your breath on this one.

Is it possible that Dodd really didn’t ask for this and Countrywide did it as a “wink wink” move?  Of course, but he HAD to have seen this coming when he refinanced.  If he didn’t, he’s an idiot who shouldn’t be in office anyway.

 

Travis

travis@rightwinglunatic.com