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A Sound Investment

Posted By Conn Carroll On June 19, 2008 @ 11:03 am In Ongoing Priorities | Comments Disabled

Senate Banking Committee chairman Chris Dodd (D-CT) may not know what interest rates currently are [1], but the Wall Street Journal has crunched the numbers [2] and estimates that the discount loan Countrywide Financial gave him will save him $75,000 in mortgage payments.

The WSJ also looked into how much of the $300 billion Dodd hopes to give away to banks as part of his housing bailout bill will go to Countrywide: “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.”

$25 billion in taxpayers funds at a cost of only $75,000 in mortgage payments. Sounds like Countrywide CEO Angelo Mozilo is earning his $22.1 million. [3]

Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2008/06/19/a-sound-investment/

URLs in this post:

[1] may not know what interest rates currently are: http://www.thenextright.com/soren-dayton/shouldnt-the-senate-banking-chair-know-interest-rates

[2] has crunched the numbers: http://online.wsj.com/article/SB121383295591086669.html?mod=opinion_main_review_and_outlooks

[3] $22.1 million.: http://www.iht.com/articles/2008/04/25/business/25pay.php

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