Need To Close the Gaps In Resolution Regimes

By Kayleigh Harvey - Talk Radio News Service

“From the outset I have argued that our financial system is not merely in need of ‘reform,’ but of ‘modernization,’” said Senator Christopher Dodd (D-Conn.), Chairman of the Senate Banking, Housing and Urban Affairs Committee.

At the hearing, which discussed “Enhancing Investor Protection and the Regulation of Securities Markets,” Senator Dodd asked the Chairman of the SEC Mary Schapiro, “Were you consulted by the Treasury and the Fed? What role do you think the SEC should play in this resolution mechanism, given the oversight and regulatory responsibilities?”

Senator Dodd also asked Ms. Schapiro to “comment on the reports of the regulatory changes that Secretary Geithner has mentioned this morning.”

Ms. Schapiro responded, “generally there was consultation.”

Ms Schapiro added, “We clearly have gaps in our resolution regime for large financial institutions....I fully support the concept of closing the gap in resolution regime so that we have a more coherent approach.”

Senator Chuck Schumer (D-N.Y.) said, “We all believe people should be rewarded for good performance, that’s not the problem, but what we’ve seen in many instances that has enraged Americans is a heads-eye wind tail you lose system. In which executives are rewarded for flashing the pan short term gains, or even worse, rewarded richly when the company does poorly and the shareholders have been hammered.”

Georgia and Russia: The next step

Combat may have ceased in Georgia, but in Chris Dodd's (D-Conn.) view only one aspect of the conflict has been resolved.

"There are two ways to undermine, if not topple a democratic government. Either militarily, or by crushing and strangling the economy to make life so miserable, the mandate of the government comes into question," Dodd said today during a Foreign Affairs Committee hearing on the consequences of Russia's August invasion.

"Many expert observers believe that having failed in the first approach Russia now seems to have shifted towards the second."

Undersecretary of State for Political Affairs William Burns addressed the committee's concerns over the future of Georgia and Russia, the steps the Bush administration has taken, and the implications of the invasion that are still unfolding.

"We and our European partners have made clear there will be no business as usual with Russia... For our part the administration has withdrawn the 123 agreement on civil nuclear cooperation with Russia and suspended US-Russian bilateral military programs," said Burns.

Questions were raised over the humanitarian response in Georgia. Senator Russ Feingold (D-Wis.) described how President Bush initially said that the Department of Defense would be head the effort which was contradicted when Secretary of Defense Robert Gates said responsibility fell on the State Department.

"It's a combined effort...the Defense Department took the early lead in moving humanitarian supplies to Georgia which was a natural step to take...but over time we have seen the state department taking the lead under Undersecretary Reuben Jeffrey and working with the Georgians to work on a long term plan for reconstruction," replied Burns.

The committee also discussed whether there were any warning signs or actions that could have been taken to avoid hostilities.

"I honestly don't think so. This is a crises and a set of tensions that has been building for some time...there were mistakes and miscalculations on all sides. We worked very hards both with the Russians and the Georgians government to urge restraint," said Burns.

Committee introduces legislation on credit card regulation at press conference

Senator Christopher Dodd (D-CT), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, introduced legislation to improve credit card billing, marketing and disclosure regulations and practices today at a press conference. The Credit Card Accountability, Responsibility, and Disclosure Act (C.A.R.D.), is set to strengthen industry regulation and supervision, prevent increases in interest rates and terms, and prohibit exorbitant and unnecessary rates and fees, among other things.

Upon becoming chairman, Dodd put credit card companies “on notice” in 2007 and with this legislation is hoping to create “fairness and transparency for consumers.” Last year 700 million credit cards were given out that allocated about $9,000 of debt per household, due to, as Dodd said,“mostly excessive fees and exorbitant interest rates.”

Sen. Carl Levin (D-MI), at the press conference in support of Dodd’s legislation, noted “With all the economic hardships facing folks today, from falling home prices to rising gasoline and food costs, it is more important than ever for Congress to act now to stop credit card abuses and protect American families from unfair credit cared practices.”

Clinton, Dodd and others rally for Newborn Screening Saves Lives Act

March of Dimes held a news conference today in conjunction with Hunter's Hope and Save Babies Through Screening Foundation, Inc. Senators Clinton, Dodd and Congressman Thomas Reynolds in addition to pro football hall of fame member Jim Kelly were on hand to show their support and rally for the swift approval of this bill.

"Newborn screening is a vital public health activity that is essential for preventing the devastating consequences of certain metabolic, hormonal, genetic and or functional disorders not clinically recognizable at birth," the act reads. It is estimated that between 16,000 and 20,000 newborns are afflicted "with one of the 29 treatable conditions for which the American College of Medical Genetics recommends screening."

On December 13th, 2007, the Senate approved the bill and tonight, the bill will be presented in front of the full House. "The Newborn Screening Saves Lives Act lays the groundwork for national screening guidelines and authorizes federal support for assistance to states to improve their programs, develop educational materials for parents and health professionals and provide follow-up and treatment for infants when disorder is detected."

Secretary Jackson Met with Both Criticism and Support Over H.U.D. Oversight and Funding

Housing and Urban Development (HUD) Secretary Alphonso Jackson testified before the Senate Banking, Housing, and Urban Affairs Committee today regarding oversight of HUD program and its fiscal year 2009 budget. Jackson’s comments about the HUD program were met with both criticism and support from Senators of both parties.

Jackson’s program was particularly called into question by democrats skeptical that the funding requested by the Bush Administration for HUD was insufficient in helping to slow the increasingly high rate of housing foreclosures dooming homeowners across the nation.

Chaired by Christopher Dodd (D-CT), Senators Casey (D-PA) and Menendez (D-NJ) engaged in often heated discussion with Jackson over not only their frustration with his lack of success as Secretary, but also over allegations that members of his staff had acted in a controversial manner. Jackson, citing the fact that the case was still not being made public, refused to discuss the case in front of Congress. The verbal jabs of Casey and Menendez were met with support for Jackson and his efforts by other Senators, particularly Senator Wayne Allard (R-CO).