Senate Panel is Seeking a Suspension on Foreclosures

February 9th, 2009 | Tags: Foreclosures

The chairperson of Senate Banking Committee Christopher Dodd said the Senate panel is seeking a suspension on foreclosures. There are plans afoot to initiate a many-faced financial regulatory programme that will be reformative in nature. The schedule is forceful and aggressive. Dodd was speaking to reporters in the Senate Press Gallery at the capitol.

Dodd said while talking to the reporters that the banking committee is aiming to have the reform law ready by April. President Obama has sought this deadline. For many months he plans to hold weekly discussions every Tuesday and Thursday.

Dodd wants to scrutinize the $700 billion bailout package as well as many other expansive measures that are to be taken to make the financial markets more modern.

On 4th February the banking committee will have a sitting with representatives from the Government Accountability Office as well as with the former chairperson of Federal Reserve, Paul Volcker. Volcker is heading the Economic Recovery Advisory Board of the new government.

The committee is desirous of having Timothy Geithner, the Treasury Secretary to testify before it on 10th February and talk about the various strategies that can be taken to implement financial changes.

Dodd said that he “wouldn’t be surprised” if the Treasury Department came up with requests for more funds in the near future to help in the plans for restoring the health of the economy. There are plans to found a bad-bank that would purchase the soured mortgage securities. Dodd said, “Before any such request is made the Treasury Department must demonstrate they know how to handle what they’ve been given. If they fail to do that I see a very high hurdle to climb.”

Ben Bernanke the chairperson of the Federal Reserve is also scheduled to testify on 24th February. The officials of credit card are due to appear before the committee on 26th February.

Dodd is also thinking about legislation for an $825 billion incentive package that would be used to modify mortgages of foreclosure victims. He is hopeful that the committee will think about putting on hold foreclosures for 90 days to allow time for negotiations. Dodd assured, “The President has talked about it.”

Also on the agenda is the important provision of giving bankruptcy judges the power to alter mortgage terms. With the Citigroup having given its approval to the measure it is expected that this will not now come up with further opposition.