Patrick Ruffini asks how this isn’t considered a bigger scandal than it is by the media. The age-old answer applies yet again: Check Dodd’s political affiliation. The Heritage Foundation wrote about this, as Patrick calls it, quid pro quo.
We have been calling Sen. Chris Dodd’s (D-CT) housing bailout bill “The Wall Street Bailout Enhancement Act” for over a month now. In particular, we have singled out Countrywide Financial as the bank with most to gain from the federal government’s generosity. Countrywide is the largest loan servicer in the nation. It has been accused by bankruptcy judges of using dubious tactics to issue mortgages to unqualified borrowers, and has been at the center of the nation’s still-unfolding mortgage crisis. In the last three quarters, Countrywide has lost $2.5 billion, and has $6 billion in nonperforming assets.
Like Obama’s former VP search team chief Jim Johnson, Sen. Dodd (D-CT) received so-called “sweetheart” deals from Countrywide CEO Angelo Mozilo. And now that Countrywide is in trouble, along comes Dodd to have the American taxpayer bail it out.