Senator Hides His Sweet Deals
When Will He Release Records?
Kevin Rennie
September 28, 2008
The world's financial markets would have avoided a right royal roiling if everyone was on Sen. Christopher Dodd's financial plan circa 2003. Taxpayers would not be shuddering at a $700 billion tab to bail out high rollers who got it wrong while making their fortunes. Instead, like Dodd, borrowers would have cut-rate 4.25 percent mortgages with thousands in fees waived.
Mortgage defaults would be fewer if dodgy customers got the velvet glove treatment extended to Dodd and other VIPs on the "Friends of Angelo" list maintained at Countrywide Financial by co-founder Angelo Mozilo. Countrywide collapsed and was taken over by Bank of America in June.
During the last two weeks of unsettling events, the same people who had a hand in creating the mess have expected the public to believe they can find the way out. Any candid analysis of the road to this parlous state implicates officials in Washington and their cozy relationships. Public records show, for example, that Dodd, chairman of the Senate banking committee, received more campaign contributions from Fannie Mae and Freddie Mac employees than any other member of Congress. He is third on the list of Bank of America-related donations after Barack Obama and Hillary Clinton.
There are other insidious ties that aren't subject to regular disclosure. Connections such as Dodd's three mortgages with Countrywide, which were exempt from Senate ethics disclosure rules.
Sen. Christopher Dodd Photos Last week, Dodd declared the chilling three-page Treasury bailout proposal "stunning and unprecedented in its scope and lack of detail." But three pages is more than Dodd's been willing to disclose about his $800,000 in loans from Countrywide. Three months ago, Dodd said he would release documents related to those sweetheart deals. Two months ago, he said he would release documents after President Bush signed the first mortgage bailout bill, which became law at the end of July. Still no disclosure from Dodd.
The crisis in the financial industry and the government's reaction to it bring more attention to Dodd's dealings because of his role on the banking committee. As the debate over what to do and what to avoid whirls on, the spotlight burns brighter on the entanglements between the princes of politics and finance. That's the crisis frightening Washington.
What Dodd knew and when he knew it will likely be subjects of inquiry by the Senate Ethics Committee reviewing his mortgage deals. Dodd said in June, when Conde Nast Portfolio's Dan Golden broke the Countrywide story, that he had no idea he got special treatment. He expressed outrage, in a written statement, that anyone would suggest he used his office to save money (more than $70,000 over the life of the loans). Then he hid. Then he fled to Ireland. Now he struts the stage acting as if the mess was created by strangers. Dodd knows how to game the system, not fix it.
Dodd said a couple of months ago that Countrywide wasn't helpful in providing information. Instead of concentrating on sticking taxpayers with that $700 billion tab, Dodd should act on this number: 800-669-6607. That's customer service at Countrywide. The helpful people there can send him all the letters, e-mails and bank documents that they scanned into their extensive record system. Some of those records probably mention the special deal from Angelo.
Others in the federal government aren't having as much trouble as Dodd getting documents. A grand jury in Los Angeles, according to the Los Angeles Times, has sent subpoenas flying. It's "seeking e-mails, phone bills, financial records and other information," according to the Times. Those investigators cover a lonely beat. Despite warnings from within the FBI, only 100 agents were assigned to pursue bank fraud by 2007.
The fundamentals won't change. Companies and interest groups will hire lobbyists and make contributions to get a crack at government money. People will swarm the trough looking for an advantage and a piece of that $700 billion.
Once you latch onto some of that bailout money, it's yours. The Treasury's proposal, which precludes any court or agency from reviewing its decisions, overreached even by congressional standards. In the midst of confusion and fear, officials looked for ways to grab and keep more power.
When Will He Release Records?
Kevin Rennie
September 28, 2008
The world's financial markets would have avoided a right royal roiling if everyone was on Sen. Christopher Dodd's financial plan circa 2003. Taxpayers would not be shuddering at a $700 billion tab to bail out high rollers who got it wrong while making their fortunes. Instead, like Dodd, borrowers would have cut-rate 4.25 percent mortgages with thousands in fees waived.
Mortgage defaults would be fewer if dodgy customers got the velvet glove treatment extended to Dodd and other VIPs on the "Friends of Angelo" list maintained at Countrywide Financial by co-founder Angelo Mozilo. Countrywide collapsed and was taken over by Bank of America in June.
During the last two weeks of unsettling events, the same people who had a hand in creating the mess have expected the public to believe they can find the way out. Any candid analysis of the road to this parlous state implicates officials in Washington and their cozy relationships. Public records show, for example, that Dodd, chairman of the Senate banking committee, received more campaign contributions from Fannie Mae and Freddie Mac employees than any other member of Congress. He is third on the list of Bank of America-related donations after Barack Obama and Hillary Clinton.
There are other insidious ties that aren't subject to regular disclosure. Connections such as Dodd's three mortgages with Countrywide, which were exempt from Senate ethics disclosure rules.
Sen. Christopher Dodd Photos Last week, Dodd declared the chilling three-page Treasury bailout proposal "stunning and unprecedented in its scope and lack of detail." But three pages is more than Dodd's been willing to disclose about his $800,000 in loans from Countrywide. Three months ago, Dodd said he would release documents related to those sweetheart deals. Two months ago, he said he would release documents after President Bush signed the first mortgage bailout bill, which became law at the end of July. Still no disclosure from Dodd.
The crisis in the financial industry and the government's reaction to it bring more attention to Dodd's dealings because of his role on the banking committee. As the debate over what to do and what to avoid whirls on, the spotlight burns brighter on the entanglements between the princes of politics and finance. That's the crisis frightening Washington.
What Dodd knew and when he knew it will likely be subjects of inquiry by the Senate Ethics Committee reviewing his mortgage deals. Dodd said in June, when Conde Nast Portfolio's Dan Golden broke the Countrywide story, that he had no idea he got special treatment. He expressed outrage, in a written statement, that anyone would suggest he used his office to save money (more than $70,000 over the life of the loans). Then he hid. Then he fled to Ireland. Now he struts the stage acting as if the mess was created by strangers. Dodd knows how to game the system, not fix it.
Dodd said a couple of months ago that Countrywide wasn't helpful in providing information. Instead of concentrating on sticking taxpayers with that $700 billion tab, Dodd should act on this number: 800-669-6607. That's customer service at Countrywide. The helpful people there can send him all the letters, e-mails and bank documents that they scanned into their extensive record system. Some of those records probably mention the special deal from Angelo.
Others in the federal government aren't having as much trouble as Dodd getting documents. A grand jury in Los Angeles, according to the Los Angeles Times, has sent subpoenas flying. It's "seeking e-mails, phone bills, financial records and other information," according to the Times. Those investigators cover a lonely beat. Despite warnings from within the FBI, only 100 agents were assigned to pursue bank fraud by 2007.
The fundamentals won't change. Companies and interest groups will hire lobbyists and make contributions to get a crack at government money. People will swarm the trough looking for an advantage and a piece of that $700 billion.
Once you latch onto some of that bailout money, it's yours. The Treasury's proposal, which precludes any court or agency from reviewing its decisions, overreached even by congressional standards. In the midst of confusion and fear, officials looked for ways to grab and keep more power.