March 14, 2008

DODD STATEMENT ON JP MORGAN, NY FED MOVE TO HELP BEAR STEARNS

WASHINGTON, DC – Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement on reports that JP Morgan Chase and the New York Federal Reserve Bank will help Bear Stearns meet its financial obligations: “This morning’s announcement of steps taken by the New York Fed to assist one of America’s largest investment banks is yet the latest example of the challenges facing our economy, our markets, and hard-working American citizens. While the impact of today’s and other recent steps of intervention taken by the Fed will not immediately be known, I firmly believe that additional, equally aggressive measures should be taken to provide liquidity to the markets and stability to the millions of homeowners and families facing the threat of foreclosure. Instead of cheerleading, and reacting with tepid measures, the Administration should act boldly, and decisively, to prevent the looming foreclosure crisis from having catastrophic consequences for our economy and our markets. Yesterday, I announced legislation that will provide real assistance to distressed homeowners, help stabilize our markets, and be a source of much-needed liquidity. The legislation, supported by leading economists on all sides of the ideological divide, would provide government insurance to refinance mortgage loans and create a floor for the price of securities in order to unfreeze the markets.”