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Reality v. Chris Dodd

Submitted by Ironman on Wed, 07/16/2008 - 06:14
in

Last night's evening news broadcasts included warnings that the collapse of IndyMac bank is likely only the first of a series of such failures. NBC Nightly News reported, "Luckily, most Americans don't know much more about bank failures than we all learned from watching the Christmastime classic 'It's A Wonderful Life' with Jimmy Stewart. ... So when a big bank failed in California just a few days ago and, given some uneasy rumors about others, there are worries in this era of mortgage meltdowns that there could perhaps be more on the way." CNBC's Erin Burnett added, "IndyMac is the bank which has failed. It's the second largest banking failure in American history. ... I just came from the stock exchange where the question isn't whether another bank will fail but which one and when." NBC added, "On Wall Street today, the bank that everyone was talking about was Washington Mutual. ... The stock fell 35% just today." Also on NBC Nightly News, CNBC's senior economics reporter Steve Liesman said, "Look, this is a banking crisis. This is a mortgage meltdown. There are going to be bank failures." And ABC World News reported, "Not all banks obviously are in trouble. Most are on very solid ground, but IndyMac's failure Friday has got rumors flying about what other banks could fail."

from U.S. News & World Report

 

http://www.usnews.com/usnews/politics/bulletin/bulletin_080715.htm

Dodd does not expect ‘many more’ banks to fail
By Jessica Holzer
Posted: 07/14/08 11:45 AM [ET]
Senate Banking Committee Chairman Chris Dodd (D-Conn.) on Monday said he does not expect “many more” banks to fail, in the wake of last week’s implosion of IndyMac Bancorp.

Dodd, interviewed on CBS’s “Early Show,” said that Federal Deposit Insurance Corporation head Sheila Bair “has indicated there are problems” with other banks. The senator added that he is “more optimistic” about mortgage giants Fannie Mae and Freddie Mac than he is about some lenders that engaged in these “very, very bad mortgages.”

from the Hill 

My money is on reality, especially since Larry Kudlow figured out that Fannie Mae and Freddie Mac are involved with $1.4 Trillion in subprime loans  http://www.townhall.com/columnists/LawrenceKudlow/2008/07/15/the_saga_of_fannie_and_freddie?page=2

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