March 17, 2008

DODD STATEMENT ON MARKETS, FED ACTION

“Until we help the people on Main Street, the problem on Wall Street will not be resolved”

“The Federal Reserve Bank’s latest action underscores the magnitude of the crisis facing our mortgage and credit markets. While the Federal Reserve has acted boldly, the agency is rapidly exhausting the weapons in its arsenal. For its part, the Administration has offered only timid measures that have done little to help families keep their homes or restore confidence to financial markets. It is time for the Administration to embrace a more comprehensive, bold, and effective approach that goes to the heart of the current financial crisis – the mortgage markets. Last week, 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 would provide government insurance to refinance mortgage loans and restore the flow of credit in the markets. Until we help the people on Main Street, the problem on Wall Street will not be resolved. I intend to work in a bipartisan fashion, along with the Federal Reserve and the Administration, to move the legislation.”