Interview With Connecticut Con

By: opendoor Mood: Date: 08/12/2010 22:08:04 Music: None

NEIL CAVUTO, HOST: Meanwhile, Democrats today crowing about the financial overhaul legislation the president is going to sign, but do they all know what`s in it?

(BEGIN VIDEO CLIP)

SEN. CHRISTOPHER DODD (D), CONNECTICUT: We don`t know ultimately how well the ideas we have incorporated will achieve the results we all desire. It will take the next economic crisis, as certainly will come, to determine whether or not the provisions of this bill will actually provide this generation or the next generation of regulators with the tools necessary to minimize the effects of that crisis when it happens.

(END VIDEO CLIP)

CAVUTO: All right, now, I heard that. I thought, we have to wait until the next crisis to come.

You know, Jim Himes, a fine Democratic congressman from the great state of Connecticut, that scarce me. I thought this whole hullabaloo was about not even entertaining that possibility.

REP. JIM HIMES (D), CONNECTICUT: Well, Neil, look, what we have done in the Congress is take some very big steps towards addressing the incredible irresponsibility that ran the range of institutions, Wall Street, credit rating agencies, regulatory agencies. We have addressed each and every one of those things. But you know what? We bring a little bit of humility to this.

CAVUTO: But, actually, Congressmen, you didn`t. With all due respect, you didn`t. With all due respect, you left Fannie -- Freddie Mac and Fannie Mae out of this. And they were at least the two huge culprits behind what got us into deep doo-doo, right?

HIMES: Yes, Neil, I know that`s the favorite talking point of the right wing. I have looked very hard.

(CROSSTALK)

CAVUTO: No, it`s not a talking point. It`s a fact. They`re out of this. They`re not included.

Now, you`re quite right it addresses a lot of things, but the two big culprits are not among those things.

HIMES: No, Neil, those are not handbags x the two big culprits. Those are part of the culprits. But you know what? Fannie Mae and Freddie Mac are doing radically different business than they were doing three years ago.

They`re not doing subprime. They not doing Alt-A stuff. We`re watching the portfolio very, very carefully. There are fewer members of Congress today who understand what the GSEs do than there are members of Congress who understand the derivatives market.

CAVUTO: Then why not, for the heck of it, Congressman, include them?

HIMES: Well, we should. We should do that, and we will do that when we get back next year. But the reality is that we took...

(CROSSTALK)

CAVUTO: Wait, wait, wait, wait. So, Freddie Mac and Fannie will be included in follow-up legislation?

HIMES: Absolutely.

CAVUTO: All right.

HIMES: Look, there needs to be a major reform of the GSEs, but the reality is that that bomb exploded. We`re now guaranteeing their liabilities. They`re not taking on any more toxic stuff. We have taken the hit there.

(CROSSTALK)

CAVUTO: You don`t think there will be another 2008, Congressman? Mr. Dodd seems to be saying, we want to prevent the next crisis. But this started by saying we Other articles:http://www.geography-network.com/blog/view/id_113/title_spect acular-celebrations/http://www.welovetattoos.com/blog/view/id_2780/title_neetu- chandra-a-basketball-fr/