Where Is The Outrage

This from the Wall Street Journal:

"Give Senator Christopher Dodd credit for nerve. On Tuesday, the very day he finally admitted knowing that Countrywide Financial regarded him as a "special" customer, the Connecticut Democrat also announced that he was bringing to the Senate floor a housing bailout sure to help lenders like Countrywide.


How much will Countrywide benefit from Mr. Dodd's rescue? The Senator's plan allows mortgage lenders to dump up to $300 billion of their worst loans on to taxpayers via a new Federal Housing Administration refinancing program, provided the lenders are willing to accept 87% of current market value. The program will be most attractive to lenders and investors holding subprime and slightly-less-risky Alt-A loans made during the height of the housing bubble in 2006 and 2007.

As the market leader during that period, Countrywide originated $167 billion of such loans, more than 11% of the nationwide total, according to Inside Mortgage Finance. Analyst Fred Cannon of Keefe, Bruyette and Woods estimates that the company is still holding more than $30 billion in subprime and Alt-A loans on its books, based on the company's most recent quarterly financials.

Even for the loans Countrywide has already packaged and sold, the company would still benefit from the bailout. That's because Countrywide continues to service the loans, and every loan that goes bad means increased costs for the servicer.

Those mortgage loan sales also typically come with a guarantee that Countrywide will buy back the loans if it turns out they were fraudulent. The more loans that fail, absent a federal refinancing, the more investors will be digging into the details of these stinkers and tossing them back to Countrywide. Mindful of the looming danger, in the first quarter of this year Countrywide increased by 46% its reserves to cover these so-called "rep-and-warranty" agreements.

What's more, the company is holding $34 billion in home equity loans, which are even more risky than the mortgage loans, and typically result in 100% losses for the lender if a borrower defaults. The Dodd bailout will make it more likely that Countrywide gets some recovery from the worst of these loans because the mortgage holder will need to negotiate a settlement with the owner of the home equity loan before participating in the federal bailout.

If borrowers and lenders take full advantage of this new federal program, and Countrywide loans go south at roughly the same rate as those from other lenders, this suggests a potential taxpayer bailout of more than $25 billion for Countrywide-originated loans. Even if the losses turn out to be far less, why should taxpayers do anything to help a company that did so much to foment the mortgage mess?

Meanwhile, Mr. Dodd continues to insist that, though he knew he was a "special" Countrywide customer, he didn't think he was getting any special financial benefit. But a $75,000 reduction in mortgage payments is no small matter for anyone living on a Senate salary of $169,300. Why else would he be known around Countrywide as a "Friend of Angelo" – Angelo being Countrywide CEO Angelo Mozilo.

Yesterday, nine Senate Republicans led by South Carolina's Jim DeMint sent a letter asking Majority Leader Harry Reid to delay consideration of Mr. Dodd's housing bailout bill in light of its benefits for Countrywide – and Countrywide's benefits for Mr. Dodd. That's an excellent idea, in addition to a Congressional and Justice Department probe of Countrywide, Fannie Mae and the favors they seem to have spread around Washington. American taxpayers need to understand more about who they're being asked to bail out here, and why."

Where is the outrage? Why isn't Harry Reid demanding hearings about this? Chris Dodd is in the pocket of "big mortgage" and he gets a pass?

I as an American citizen demand that all of Chris Dodds assests as well as his fameilys be frozen, his passport revoked, and he be incarcerated with out bail until such time when he can be put on trial and found guilty of excepting bribes in return for political favors. Outrageous. Harry Reid should resign his leadership post as well as his senate seat, and I mean yesterday. He and the rest of his ilk are scum who have absolutly no right to pass laws which effect the country.

When will the American people stand up and say enough is enough and demand an end to the corruption that seems to be running rampit on both side of the isle?