Investigate the Chris Dodd Bailout

Conn Carroll / June 17, 2008

Yesterday Rep. Jeb Hensarling (R-Tex.) became the first member of Congress to call for an investigation into the relationship between Sen. Chris Dodd’s (D-Conn.) $300 billion bailout of Wall Street lenders like Countrywide Financial, and the below-market rate loans Dodd received from Countrywide.

Hensarling may be the first member of Congress to step up efforts to protect taxpayers from this egregious bailout, but there are already plenty of non-partisan voices calling for an investigation including:

• The New Haven Register: “Ethics probe needed of Dodd’s loans – Senator charged with oversight of banking got break on mortgages.”
• The Gran Forks Herald: “Senate should investigate loans.”
• The Washington Post: “Angelo Mozilo’s loans to the well-connected raise some questions. They should be answered.”
• Connecticut’s The Day: “Sen. Dodd should answer all questions surrounding his Countrywide loans.”
• CNBC‘s Diana Olick: “Senators As Confused Borrowers? Don’t Insult Our Intelligence.”
• Wall Street Journal: “We are about to find out if Congress’s passion for investigating business ethics extends to conflicts of interest and cash that involve fellow Members. … Meanwhile, until it is clear how much Countrywide will benefit from Senator Dodd’s proposed $300 billion mortgage rescue – and exactly how Mr. Dodd came to do business with Countrywide – Congress should call a halt to legislating bailouts. Taxpayers deserve no less.”