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Dodd: Financial Crisis Was 'Avoidable'

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September 19, 2008 8:10 AM

ABC News' Nitya Venkataraman: As the country's leaders promised bipartisan efforts to stabilize the financial crisis, Banking Committee Chair Sen. Chris Dodd, D-Conn., stressed that both parties would work together to find a solution but emphasized that the "total meltdown of the financial market" was "avoidable."

"This was avoidable. This did not have to happen. Where were the cops on the beat? Where were the regulators? When these loans were being made they did nothing." Dodd said, appearing on Good Morning America with ranking committee member, Republican Sen. Richard Shelby.

Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke briefed congressional leaders Thursday night on the plan, one that would likely require congressional legislation, that would allow the government to rescue troubled banks by purchasing their bad assets.

Congressional leaders said Thursday they expected to act quickly on the proposed plan, prior to taking a pre-election recess.

Shelby stressed the need for more information. "Is this their super-plan?" he asked. "We want to see the details…this is not a done deal yet, but we know there's a crisis, there's stress in the financial markets."

"Every week we’re being told this is it," Dodd added. "Richard and I wonder when it’s going to end."

In the interview with ABC News' Diane Sawyer, Shelby also repeatedly expressed grave concern over what the final cost would be to the taxpayer.

"We don't know how much this is going to cost," Shelby said, citing estimates ranging from half a trillion to a trillion dollars. "That's going to visit the taxpayer. Sooner or later it's either going to be a debt charged to all of us to our children."

September 19, 2008 in Vote 2008: Democrats, Vote 2008: Republicans, Washington, White House | Permalink | User Comments (111)

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Obama took $185,000 in 3 years
Todd took $198,000 in 7 years

from Fannie/freddie

you joined the Liberal tank of MSNBC/NBC/CNN/CBS and all Liberal media

Shame on you

Posted by: adam -----------------You forgot to mention what McCain took.

Posted by: CW | Sep 19, 2008 8:52:56 AM

News for ABC and the rest of MSM, we are going to get the facts out weather you like it or not. Dodd=$198,000 and Obama=$185,000 from fannie and freddie lobbiest. Why dount you report the facts ABC, they got more more money then any other senators and blocked additional regulations the Bush administration tried to install two years ago.

Posted by: billy bob | Sep 19, 2008 8:53:13 AM

If these people lived in china these polititions would be put to death. Some of these people need to go to jail. I cant believe they are making our laws. This is just as bad as texting while driving a train.

Posted by: kt | Sep 19, 2008 8:53:44 AM

is Dodd going to appear on the View next and fist bump Whoopi and Joy Behar?

How about asking real questions of Obama supporter Dodd?

Posted by: geevill | Sep 19, 2008 8:54:34 AM

Here is a thought. I dont intend to pay for stupid management and a public funds bailout for these companies. Here is a thought. Get a list of all of the names of all the officers and managers of those companies that we the taxpayers are bailing and sue everyone of them for the max amount that you are able in small claims court. I would just love to see the lawyers faces when they have 200,000 cases to settle. Sue them all from the CEO to the mail room manager. Sammanz

Posted by: sammanz | Sep 19, 2008 8:56:50 AM

I wonder why the Dems are not calling for a congressional investigation into the mortage crisis???? They would be investigating themselves is why.

Posted by: billy bob | Sep 19, 2008 8:56:55 AM

Again the Democrat takes a truckload from Fannie Mae and Freddie Mac, THEN whines. My retirement funds are dropping because Democrats pushed banks to loan money to people who had no income to qualify for the mortgage. YES, I'M MAD. I live within my means and I get punished. Dodd and friends live beyond their means - and I have to pay. This is NOT going to end well.

Posted by: Democratic Failures | Sep 19, 2008 8:58:33 AM

CW

Let me answer you

Obama took $185,000 in 3 years
Todd took $198,000 in 7 years
Clinton took $135,000 in 6 years
McCain took $20,000 in 20 years.

Liberals never get it

Posted by: adam | Sep 19, 2008 9:00:47 AM

Dont you find it odd that the dems are trying to all of the sudden be bi-partison??? It would be to their advantage for the economy to be in the tank right before the election. The facts are that the finger points to them and they want this shoved under the rug as quick as possible.

Posted by: billy bob | Sep 19, 2008 9:00:58 AM

The best thing you can do is allow these bankers to fall flat on their faces.... that is the only way they will be taught a lesson. The unfortunate downside is that its going to bring down the entire economy. All these bailout proposals I hear basically are the same, transfer the cost of the failures to the american taxpayers. The question I pose to readers is: If these banks became so large that they were considered "Too Big To Fail", then why is the solution creating even BIGGER banks (i.e. merger of JPM & Bear Stearns, merger of Bank of America and Meryll Lynch)? My second question, why should we bear the cost of their failures?

Posted by: Matt | Sep 19, 2008 9:01:12 AM

You got to be kidding me. Chris Dodd states this could have been avoidable, where were the bank regulators. Where was Chris Dodd. I cannot believe he was unaware that people were buying houses for $400,000.00 and made $60,000.00 a year. Even I knew there would be problems at some point and I am just a middle class working women.

Posted by: mary | Sep 19, 2008 9:01:36 AM

Let's see you bother the money from "us" the US Taxpayer to give to the banks who participated in the corruption and helped rake everyone over...now those same banks get to keep the assets that we are paying for? I say GIVE every man and woman who got foreclosed on a FREE house...in America....Let's take the bailout right to the lowest level first....OH...that's right....you can't!

Posted by: Zellie | Sep 19, 2008 9:02:23 AM

CW

are you there?
are you there?
are you there?

Posted by: adam | Sep 19, 2008 9:02:45 AM

John McCain new what was happening, it's the same as the S&L scandal and the Keating 5, in which he was involved in.

Posted by: deb | Sep 19, 2008 9:02:55 AM

Get REAL! There is NO Mr. Smith in Washington. They are ALL on the take in some form or the other. Goverment has been stealing from Social Security! They just figured they'd take from it before all the con's, druggies, and people who never worked get a hold of it. Like this financial crisis there were No Babysitters. They've all taken money or "gifts". From buying $500 screwdrivers to actual putting their greedy little hands in the pot. So it really doesn't matter who you vote for; the rich, big industies, and lobbist have it already figured out.

Posted by: natauna | Sep 19, 2008 9:03:31 AM

Liberals

do you know that

Obama & Todd got a loan .5% less than the current market rate 3 years ago?

Nitya Venkataraman - why don't you write about it

Posted by: adam | Sep 19, 2008 9:05:06 AM

Oh really.....it was avoidable???? Of course it was avoidable...ya'll avoided EVERY single sign it was going on...encouraged it when you found it out...ignored it while the groundswell grew and now that the tsunami and mother of all financial storms sweeps across our country and the world...here ya come....a dollar short and 7 years too late... RIDICULOUS... DESTRUCTIVE....IRRESPONSIBLE....Ya'll do NOT have a plan...you have your finger covered with a $ bill stuck in the hole in the levy....FOR SHAME!!!

Posted by: Zellie | Sep 19, 2008 9:05:45 AM

deb, read our previous post and look it up before you embarrase yourself again.

Posted by: billy bob | Sep 19, 2008 9:06:53 AM

deb

all you can do on Mccain is 30 years old story - which was proven he was not guilty.

Which media investigated Obama's house purchase with Rezko - None

Liberals are blind

Posted by: adam | Sep 19, 2008 9:07:13 AM

The media is only as liberal as the giant corporations that own it.

Posted by: Lambofgoth | Sep 19, 2008 9:08:15 AM

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