Foreclosure Crisis Is A Boon For Some

Foreclosure crisis turned out to be a boon for some like Christopher Dodd. The collapsing financial institutions had been more than generous with the head of the Senate Banking Committee, Christopher Dodd.

When the Democrats took over Congress Dodd was given a powerful position. The senior senator from Connecticut immediately reacted with the reporters and presented a rosy picture about taking up a pro-industry stand but after giving priority to the economic health. He proudly declared, “At the end of my tenure on this committee I want it to be said that the safety and the soundness our financial institutions was not weakened on my watch.” That bombast was towards the beginning of 2007. Since then the foreclosure crisis has bared its fangs to expose many skeletons in the cupboard.

Today Dodd has to admit that finances are in a mess – “economic maelstrom”. While the Bush administration is grappling around to stem the tide of the foreclosure related crisis, fingers are pointing at Dodd and questions about campaign cash flowing in.

It is an established fact that the most generous donors in political games are financial firms. Candidates have been treated to $1 billion. Of these recipients the name of Dodd comes first. During the last two decades financial firms have poured in $13 million and may be more into Dodd’s election moves. In the past two years $6 million has rolled in. It is alleged that so far only the top candidates like Clinton, Obama and Kerry have collected more than Dodd.

The foreclosure crisis is seeing some of the best of Dodd’s financial buddies on the Wall Street explosion list – AIG, Lehman Brothers, Merrill Lynch as well as Bear Stearns. On stage Dodd is strutting about as one of the key actors in efforts to bring about a balance in the economy. Dodd has been a senator for five terms. The accusing finger alleges that he along with many others in Washington did very little and that to, too late to book the companies before the collapse.

Mary Boyle speaking on behalf of Common Cause said that the system in the country is unique in that those that donate the most twist the policies of the Congress to their liking. She added, “What we need is a system where the public is the beneficiary, and not special interests.” Dodd however points out that he has repeatedly warned in speeches and letters against predatory lending.