Dodd to seek changes to Treasury relief package

Sen. Christopher Dodd (D-Conn.) said that the $700 billion bailout for Wall Street firms proposed by the U.S. Treasury Department needed to be modified and Democrats would most likely add new provisions to the package.

Speaking with reporters in the Russell Senate Office Building Sunday, the chairman of the Senate Banking Committee said Capitol Hill aides had begun framing the relief package into legislative language Saturday night.

{mosads}“The idea of coming up here and say ‘Give us $700 billion and we’ll see you later’ is unacceptable,” said Dodd. “I realize this was to put something on the table and it was not the last, best offer and we are responding to it in a constructive way.”

The Connecticut Democrat is concerned over the broad authority the package gives to Treasury with little oversight by Congress.

“We are going to insist upon accountability, taxpayer protection and getting to the bottom of this,” said Dodd.

One measure under consideration would restrain bonus packages for leaders of failed companies. Senior executives at Lehman Brothers, a venerable Wall Street firm that went bankrupt last week, were awarded multi-million dollar compensation.

“This is kind of the thing that infuriates the public,” said Dodd. “One or the way other, we are going to incorporate something to restrain executive compensation.”

Pressure is on Congress to act quickly and finish the bill before they adjourn for the recess by the end of this week. Dodd said he is optimistic for the bill’s chances but he wanted to make sure the legislation was in order.

“If takes a little longer, so be it. I am more interested in getting this right,” said Dodd.

Asked if a second stimulus package would be attached to the Treasury relief plan, Dodd suggested it may not be included with the bill.

“I think the general shift has been to include something in [the congressional resolution for the federal budget] and not the bailout,” said Dodd.

Reporters asked Dodd to describe specifically what Treasury Secretary Hank Paulson said to lawmakers last Thursday that led to the sense of urgency on Capitol Hill this weekend. Dodd declined but compared his colleagues’ reactions to that of the 9/11 terrorist attacks.

“If that doesn’t make the point, I don’t know want does. Because of the language used, it was a very sobering moment,” said Dodd.