Monday, August 31, 2009

When Will This Country Stop Senator Chris Dodd?

We know that Dodd received a "FOA" mortgage from Countrywide.  "FOA" is Friends of Angelo Mozilo, the disgraced and corrupt ex-Countrywide CEO who is under massive class-action lawsuits which total in the $100's of billions.  In fact, one of Dodd's mortgages was underwritten in DC stating that it was his "primary" residence, when in fact his primary home is in Connecticut.  This means is he received much more favorable terms and a lower mortgage rate.  We also know that Dodd was responsible for engineering legislation that helped usher in the proliferation of subprime mortgages, especially with regard to the ability of Fannie Mae and Freddie Mac to underwrite these garbage loans, many of them fraudulent. 

And now we see via Forbes, that Senator Dodd went to bat for a big Connecticut hedge fund, which also owns a mortgage servicing business, in order for this fund to attain access to the TALF program (Term Asset-Backed Lending Facility).  TALF is a  Federal Reserve loan facility to support toxic asset-backed securities, many of which were packaged by Wall Street.  Wall Street couldn't unload them on the public and so now the Fed is bailing out Wall Street.  HOWEVER, so is the Taxpayer.  The TALF program is back-stopped with $20 billion of credit protection guarantees from the Tim Geithner-led U.S. Treasury (anyone vote for this when they voted for Obama?).  This means that the Taxpayer pays for the first $20 billion of losses on these securities that the Fed bought from Wall Street firms.  The problem is, we don't know to what extent the Fed has overpayed for these assets, because Barney Frank and the Senate won't pass legislation allowing the Taxpayer to audit the Fed so we can find out how much Taxpayer money is being transferred directlty to Wall Street. This link comes from

Chris Dodd may have put pressure on the Fed to aid a troubled mortgage servicer. Forbes is reporting that the Senator from Connecticut helped Carrington Mortgage by sending a letter to the Federal Reserve urging easier terms for mortgage servicers taking part in the TALF program.  And when the Fed changed the TALF program, it turned out that Carrington was the only company to benefit. Carrington is owned by a hedge fund based in Greenwich, Connecticut.

Here's the link:  The Helping Hand of Chris Dodd

When will this wholesale pillage by Dodd of the U.S. taxpayer end?


  1. Dave, I humbly submit that it is up to "We The People" in all matters to improve the quality of governance going forward. The entire government needs to be refashioned. And I have very bad news, the PTB aren't about to allow it happen peacefully.

  2. Stop the Dodd!