US Treasury secretary's role in sub-prime questioned
Senate Banking committee calls on Paulson to address sub-prime concerns or face formal investigation
A US Senate Banking committee has called on Treasury secretary Henry Paulson
to address concerns raised over the role he played in the sub-prime meltdown.
Committee member Chris Dodd said he was ‘deeply concerned’ about recent
reports which accused Goldman Sachs of ‘ injecting dangerous financial products
into the world’s commercial bloodstream’ during Paulson’s tenure as chief of the
company.
‘If these facts are indeed true, the administration’s inaction when this
crisis began to emerge earlier this year is increasingly suspect. It is in the
best interest of resolving this crisis if secretary Paulson . . . addresses the
concerns. Failure to do so may be cause for a more formal investigation,’ Dodd
said.
The committee’s concerns come a day after Paulson urged Congress to push
through housing laws which would arrest early mortgage foreclosures next year, a
report
said.
President Bush has so far acknowledged the measures but he maintained that
there would be no bail-out for mortgage lenders.
Further reading:
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Dodd Asks Paulson About Goldman Subprime Role
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Dodd questions on Paulson’s role at Goldman
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Sen Dodd Threatens Investigation Of Treasury Secretary Paulson