Assisting Bank of America in its purchase of CountryWide Financial, Christopher Dodd (D-CT)has almost succeeded opening up the government purse to handout $300,000,000,000 of tax payer money to unscrupulous and inept banks and their investors.The bailout law is was put into H.R. 3221 by Senator Dodd, and was authored by it's main beneficiary Bank of America. Dodd has been well supported by these two consituents with below market mortgages and campaign contributions.
While Bank of America's proposal included notes to be sure the law was not "percieved as a bailout"(pdf link), Dodd worked to couch this as the "Hope for Homeowners Act" and senators pointed out the potential problems our cities and counties would face with the costs of foreclosures going forward.
Why not just hand the money off to the cities directly?
Unless congress can come to see that it's OK to let bad businesses fail. We'll make it harder for us to create new and better solutions and institutions to carry us out of this hole.
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