It turns out that the housing bailout bill really is "exactly what Bank of America and Countrywide wanted." A memorandum dated March 11, 2008 has surfaced, and it seems to support the idea that BofA essentially wrote the bailout section of the bill. "Almost all of BofA's preferences are mirrored in the Dodd-Shelby legislation," Stephen Spruiell writes.
The BofA document even offers tips on how to manipulate the public's reaction to the bill: "We believe that any intervention by the federal government will be acceptable only if it is not perceived as a bail-out of the bond market."
This news should hurt the bill's chances. It has already been tainted by news that its most prominent supporter, senate banking committee chairman Chris Dodd, received massive campaign donations from Bank of America executives and sweetheart loans from Countrywide. The president has to veto the bill on the grounds that it would "unfairly benefit lenders who made bad loans."
BofA-Scripted Bank Bailout Looks Awfully Similar to Dodd-Drafted Housing Bill [The Corner]
Posted by guest , Jun 23, 2008 2:11PM
Tim's writeup was better!
Posted by Joseph di Jersey City , Jun 23, 2008 2:16PM
"Massive campaign donations" = $70K. Sheesh, anyone have a number for what this bailout is worth to BofA? On the face of it, it looks like a pretty good return on their $70K.
Posted by John Carney , Jun 23, 2008 2:26PM
Yeah. It's an amazing return. One odd effect of our campaign finance laws is that our senators come awfully cheap these days.
The way to look at this is by looking at how much Dodd needs. At the rate of donations from BoA this year, they are giving him about 10% of the total amount he spent on his last Senatorial campaign.
Posted by Investorcluzo , Jun 23, 2008 2:26PM
bofa is trying to stake its claim on the role of "big brother" while covering its own a$$
Posted by guest , Jun 23, 2008 2:45PM
I always wondered why MD's here strangely ponied up to Chris Dodd who seems like a rank and file numbnuts.
Posted by cauxion , Jun 23, 2008 4:30PM
This is hilarious!! lol... You guys are 100% correct, they got Dodd on the cheap.
I wonder how they are going to try and explain this one way.
Posted by Clown Capital , Jun 23, 2008 4:49PM
Chris Dodd just may be the stupidest senator ever to come out the "Wasp Nest". (excluding the protestant affiliation) BofA got him on the cheap because Countrywide looked out for his Jethro ass back in the day. This man is on the Senate Banking Committee? A few days ago, he couldn't even quote the Fed-Rate to reporters! Now we're finding out that BofA may have written the bailout proposal that was supposed to be the intellectual property of his committee? Wake up Dodd! This isn't a f%*&ing LOR, where "you write it, I'll sign it" is appropriate. Where is our democracy!!!!!!