Democratic Sen. Chris Dodd of Connecticut, chairman of the Senate Banking Committee, has remained largely unhurt by the controversy over his "sweetheart" deal with mortgage lender Countrywide. But CNBC's "Squawk Box" co-host Carl Quintanilla finally bucked the media trend of ignoring the scandal and brought the loan up in an interview July 14.
Dodd appeared on CNBC's "Squawk Box" in the wake of Treasury Secretary Henry Paulson's July 13 announcement that the federal government would take actions to prevent government-sponsored enterprises Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) from failing.
Quintanilla asked Dodd if his association with Countrywide, now owned by Bank of America (NYSE:BAC), compromised his ability to lead on the housing issue.
"Not at all," Dodd said. "In fact, we're more than happy to talk about that and since we've talked about having a - refinancing a house some years ago. And those rates we were given were exactly within the band of rates that were available to people."
Quintanilla was referring to a report in the June 12 issue of Condé Nast's Portfolio magazine, which revealed that some lawmakers and high-ranking bureaucrats were given preferential interest rates as part of Countrywide's "V.I.P." program.
Dodd appeared on CNBC from his East Haddam, Conn., home, which the Portfolio article reported was refinanced with a $275,042 loan. Countrywide waived a quarter-point on the loan, giving him a rate of 4.5 percent.
Dodd called it "unfortunate" that the issue was a controversy and cited Senate support for his housing bill as evidence he is still able to lead.
"It's unfortunate that people wanted to raise that, ironically right in the middle of the housing issue as we are trying to move forward," Dodd said. "But again, I don't have any concerns about it at all. I think the reaction by my colleagues in the Senate - as I say, 63 to 5 - about my housing bill the other day, 19 to 2 out of our committee - I consider it a non-issue."
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Everyone with decent credit
July 14, 2008 - 14:48 ET by Biff McCainEveryone with decent credit gets a quarter point knocked off.
"Burn that mother down." -- Jimmy Ellis
Really? Then why have a
July 14, 2008 - 14:57 ET by motherbeltReally? Then why have a VIP program? Does everyone with "decent" credit get into the VIP program and get the discount without paying points?
When we bought our house, both my and my husband's credit scores were not just decent, but extremely good, and we didn't get any discount.
Shoot 'em all; let God sort 'em out! - Marge Simpson
Hey, Dodd is just a nice guy...
July 14, 2008 - 15:42 ET by Prester John...and the fact that he is the Chairman of the Senate Banking Committee has absolutely, positively, nothing to do with it. I mean c'mon, don't be such a cynic.
<<sarc>>
It's like going after Dodd for not paying sticker price on a car
July 14, 2008 - 16:15 ET by Biff McCainmotherbelt,
It was also on CNBC that 62% of the people who had sub-prime mortgages
would have qualified for a regular mortgage. Both you and them should
have shopped around.
"Burn that mother down." -- Jimmy Ellis
So, it's 'buyer beware'
July 14, 2008 - 17:20 ET by Scout FinchSo, it's 'buyer beware' concerning Dodd's (D) Countrywide scandal, but otherwise it's 'evil capitalists preying upon innocent victims', huh?
Excuse me, Biff, are you
July 14, 2008 - 18:25 ET by motherbeltExcuse me, Biff, are you implying that we are dumb and got taken for a ride? Of course we shopped around. We took the best deal we could get. We got a "no closing costs" loan at a good rate. But no one offered us a discount without paying points just for having "decent" credit. Everyone looking for a mortgage is expected to have "decent" credit.
Or are you implying that the mortgage industry is so desperate for people who can manage more than a subprime loan that they are offering discounts to one and all?
Shoot 'em all; let God sort 'em out! - Marge Simpson
delete double
July 14, 2008 - 14:55 ET by motherbeltdelete double
"I consider it a non-issue"
July 14, 2008 - 15:10 ET by Bayshoreman"I consider it a non-issue". He would. You can bet your Fannie Mae that if Dodd was in the minority party with the whole mortgage banking industry coming apart, he'd be out there casting forth fire and brimstone against any Republican leadership people who had "VIP" deals with those who they regulate.
Really. That's a typical
July 14, 2008 - 15:14 ET by motherbeltReally.
That's a typical Democrat tactic: don't answer the charge; attack it as irrelevant. Then change the subject to the "important work" you're trying to do.
Shoot 'em all; let God sort 'em out! - Marge Simpson
Right on motherbelt!
July 14, 2008 - 16:20 ET by BayshoremanRight on motherbelt!
Democrat Congress - corrupt
July 14, 2008 - 15:12 ET by Free ThinkerDemocrat Congress - corrupt and incompetent. Funny how this scandal was just swept under the rug by the msm. Yes Senator Dodd it is unfortunate that you chair the banking comittee and were able to get a bribe, I mean sweetheart, I mean a "preferential" VIP rate and see nothing unethical about it.
Deniability is the name of the game
July 14, 2008 - 15:18 ET by pocomocoWhat we are seeing here is right out of a movie where a man is caught by his wife with another woman in bed with him.
The husband keeps insisting that his wife was mistaken in what she saw, and his deniability is so convoluted that the wife apologizes and says she must have been mistaken in what she saw.
I think we can equate Dodd as the caught husband performing a deniability tap dance expecting us to apologize and say we must have been mistaken in what we saw.
Note, too, how adroitly he changes the subject. An unmistakable characteristic of a politician who is attempting to hide something .
SENATOR DUDD...
July 14, 2008 - 15:24 ET by danybhoyA couple of things I would like to add...
1. The words leadership & Senator Dodd should NEVER be mentioned in the same sentence.
2. Does'nt everyone go straight to the bank president to get a sweatheart loan rather then go to a laon officer?
3. What's really scary is that Dodd has the balls to run for President despite having no grasp of ethics in dealing with issues that he oversees on his committee. Thank God about 5 dozen people voted for this lightweight in the primaries.
4. What is REALLY amazing is that a news operation in the NBC family of networks kicked Dodd on this one. The Dem's leadership types get a pass almost all of the time when they screw things up & look like a total boob. So well done to CNBC on this.
"...it's still We The People, Right?" Megadeth
The reaction of his colleagues in the Senate...
July 14, 2008 - 15:50 ET by ThalpyThe reaction of his colleagues in the Senate is a ringing endorsement of Chris Dodd's leadership skills--like having Bugsy Siegel endorsing Bernado Provenzano for mob membership. His wisdom has always been apparent, even as a young Congressman in the '70s. " The greatest gift our country can give to the Cambodian people is peace, not guns. And the best way to accomplish that goal is by ending military aid now." The million plus dead might disagree with Senator Dodd, but sadly they can't agree or disagree. Dodd might even consider it a non-issue.
Has Senator Dodd's judgement improved?
Great research
July 14, 2008 - 16:26 ET by BayshoremanGreat research Thaipy. I'm sure right after Dodd said that he and Teddy did the DC nightclub circut looking for a more comforting "peace".
Chris says its a non issue.
July 14, 2008 - 16:12 ET by Calypso JonesWELL, That should be good enough for the rest of us.
I wouldn't give points to the interviewer. This is a question that had to be everso gently asked and no doubt Dodd had his answer ready and fully expects it to be accepted. Besides, I hardly think we unsophisticates can understand the complexities of this anyway.
CNBC questions Dodd's leadership abilities
July 14, 2008 - 16:19 ET by jefflebowskiafter the Countrywide scandal? I question his leadership after suffering through his Senate career. The epitomy of everything that is wrong with DC. Get rid of 'em all!
Jeff Lebowski
www.angrywhitedude.c...
The most ethical Congress in
July 14, 2008 - 23:45 ET by cmujellyThe most ethical Congress in history, R.I.P. 2008.