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Dodd: Bailout should be further along
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Courtesy: WDCPIX.COM
Senate Banking Committe Chairman Chris Dodd expressed his disappointment with the nation's banks and Treasury Secretary Hank Paulson at a hearing on capitol hill today. On Wednesday Paulson announced the government would no longer use the 700 billion dollar bank bailout money to purchase faltering home morgages from bank dockets.
An infuriated Dodd insisted home foreclosures are the root of the nation's lending and credit crisis. The Connecticut democrat says the bill congress passed was intended to "help hard working Americans" stay in their homes. He said the "preservation of homeownership" should be the government's top priority. He told the committee it's "regrettable" that those who are in charge are neglecting there duty.
Dodd threw some arrows at bank executives as well. He reminded bank leaders they have a "duty to use the loans (provided by the government) to create affordable and credible terms for homeowners." Adding that banks should not hord the money or use it to buy up weaker banks, it's supposed to be used for lending. Dodd also wants to see banks restrict executive compensation packages immediately. As a final note Dodd said if banks don't believe they have that responsibility, "than return the money you've been given and good luck to you on your own."
Meantime, new reports show the number of home foreclosures continue to rise. Stats from October show nearly 300 thousand homes got at least one foreclosure statement in October. That's an increase of five percent.
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