July 24, 2008


WASHINGTON, DC – Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, today formally announced an agreement with the House of Representatives and the Administration on comprehensive legislation to address the current housing crisis and strengthen our economy.  Dodd and Shelby also commended the House of Representatives for passing the legislation, which was sent to the House from the Senate last week and will now return to the Senate for consideration.
“This legislation is the product of tireless collaboration between the Senate and the House to develop solutions that will strengthen our economy, restore confidence in our financial markets, and provide urgently needed relief to American families who are struggling to make ends meet,” said Dodd.  “The problems in our economy transcend partisanship – and for once, the Congress and the President showed we can, as well.  I commend Congressman Frank for his work on this effort, and look forward to the Senate’s consideration of this significant legislation.”
“It is unfortunate that it took the near collapse of Fannie Mae and Freddie Mac to convince a number of my colleagues that these entities do indeed pose a systemic risk to the U.S. and global economies,” said Shelby.  “Nevertheless, I am pleased that this legislation now acknowledges and addresses that reality in statute by giving the Federal Reserve a role in advising the new regulator on risks to our financial system.   Although the Fed’s role is temporary, it is now well-established that the systemic risks the GSEs pose are permanent.   That debate is over.  The only question now is to whom the Congress assigns that responsibility in eighteen months.  I appreciate the efforts of the House on this legislation and look forward to working with my colleagues in the Senate to get this bill to the President’s desk in an expeditious manner.” 
A summary of the legislation is attached.