March 11, 2008

STATEMENT OF SENATOR DODD ON FED LIQUIDITY ANNOUNCEMENT

WASHINGTON, DC – Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today issued the following statement on the announcement by the Federal Reserve to expand its securities lending program in order to offer additional liquidity to the markets: “Last week, I publicly asked the Federal Reserve whether it should consider additional measures to address the liquidity lock-down that has spread through our credit markets. Today’s announcement by the Fed is a significant step to address this very serious situation. Additional steps should also be considered to address the root cause of the present market turmoil – namely, the foreclosure crisis. I am preparing legislation to do so which, like the Fed’s action today, can help restore stability and liquidity to the mortgage market and credit markets generally.”