September 17, 2008
DODD STATEMENT ON AIG
“I appreciate Chairman Bernanke and Secretary Paulson informing me of their decision regarding AIG. This decision is a clear sign that the financial crisis – which is a direct consequence of this Administration’s neglect and wayward economic policies – continues to deepen. Actions that were inconceivable just days ago are now occurring in a manner and at a pace that is certainly cause for concern. The Banking Committee will continue to play a constructive role in resolving this crisis. In order to do so, we must ask some crucial questions on behalf of the American people: how will this action affect taxpayers – who have already been asked to commit hundreds of billions of dollars to help stabilize large financial institutions? To what extent will it calm the markets – or just add to the uncertainty? And does this Administration have a coherent strategy to put our economy on stronger, steadier footing? I look forward to hearing the Administration’s response to these questions at hearings I will hold in the coming days.
“Above all, I continue to believe that the Administration needs to become much more aggressive about addressing the root cause of this entire economic crisis – namely, the foreclosure crisis. Only when foreclosure rates start to drop significantly will we see home prices begin to level out and our markets regain much-needed stability.”
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