As far as Senator Chris Dodd (D-Conn.), Chairman of the Senate Banking, Housing and Urban Affairs Committee, is concerned, there must be a “heightened sense of urgency” about the enactment of the Emergency Economic Stabilization Act. At a full committee hearing on the turmoil in the United States credit markets, the committee heard from Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation; Neel Kashkari, interim assistant secretary for financial stability and assistant secretary for international affairs at the Treasury Department; Brian Montgomery, federal housing commissioner and assistant Housing and Urban Development secretary; Elizabeth Duke, member of the Federal Reserve Board of Governors; and James Lockhart III, director of the Federal Housing Finance Agency.

The opening statements included Senator Charles Schumer’s (D-N.Y.) comparison of the financial investment firms in question to “spoiled teenagers” who threw a house party while their parents were out of town. Schumer said the financial crisis was “not unforeseeable” and that the Treasury must issue guidelines for future banking endeavors now that taxpayer money is involved. Senator Bob Menendez (D-N.J.) believes that if 9800 Wall Street jobs were lost everyday, like they were lost for millions of Americans, the financial problem would have been solved long ago. He then stated that the “funds are not a gift” from taxpayers to banks and that must be made clear through oversight and compliance.

In her testimony, Chairwoman Sheila Bair advised the necessity to recapitalize banks in order to reverse the “confidence problem” happening in America. She said this recapitalization would be similar to that of European banks and would help in the area of liquidity. She also advised that to help homeowners, the FDIC would work with the Senate Banking Committee and Treasury Department to prevent future foreclosures and create sustainable mortgages. Neel Kashkari said that to help financial institutions, the Treasury Department had created seven policy programs including an equity purchase program, a homeownership preservation program, and an executive compensation program. Kashkari believes that the Treasury has “accomplished a great deal in a short period of time,” but stated that it may not be until the end of the year before the $250 billion is allocated to chosen banks.

In a briefing with the chairman of the Democratic Senatorial Campaign Committee, Senator Chuck Schumer (D-N.Y.) spoke of the funding from special interest groups for Republican senatorial races. Over $16.3 million has been spent on attack ads against Democrats in strategic swing states such as New Hampshire, Minnesota, and Colorado by the Chamber of Commerce and its affiliates. Schumer pointed out that “the good news is that it’s not working” with the polls showing overwhelming support for Democratic candidates in Virginia, New Mexico, Colorado, Alaska, and New Hampshire. Schumer believes that “the message of economic change is succeeding everywhere” and the Democrats are the ones expected to bring this change.

Senate Majority Leader Harry Reid (D-Nev.) held a pen-and-pad briefing on the news of oil companies making record profits. Senator Chuck Schumer (D-NY) said the oil companies are using their record profits to buy back their stock and make it more expensive, rather than make gas more affordable for American consumers. Schumer said the oil companies’ record profits could do so much to lower gas prices, such as give $2000 to every American family. Senator Patty Murray (D-Wash.) said oil companies are trying to increase their profits while consumers suffer.

Senator Dick Durbin (D-Ill.) said the Republicans’ agenda is the oil companies’ agenda. Their push for drilling in Alaska will give the companies more acres to siphon profit from. Reid said the Republicans’ persistent obstruction of all Democratic efforts to support renewable energy is “mind-boggling.”

At a Senate Judiciary Committee hearing on unfair employment practices at the Department of Justice, Senator Charles Schumer (D-NY) describes his disgust at those who discriminated against politically liberal applicants for law positions. He calls the practice “despicable” and regrets that they may go unpunished. (0:32)

 

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The Senate Judiciary Committee discussed a report on politicized hiring at the Department of Justice in favor of conservative candidates. Senator Patrick Leahy (D-Vt.) said the report realizes his worst fears - pervasive partisan hiring in the Department of Justice. (more…)

The Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee held a press conference to discuss elections being held in November. Sen. Chuck Schumer (D-N.Y.) told the press that Saturday, July 29 begins the 100 day countdown to the November election, saying that the DSCC has overwhelming evidence that Americans are looking for change and finding it in Democrats.

Schumer said polls indicate that Americans are more concerned over topics like health care and education rather than national security and abortion, a concern he said shows a preference for Democratic policies. He noted Mississippi, which he described as the most conservative state, is leaning Democratic in November and becoming a swing state. Schumer, who said that only 3 of the 35 seats contested in the fall are in blue states, said Sen. Barack Obama’s popularity in the Republican Deep South is a valuable asset for Democratic senatorial contests. Schumer said Democratic senatorial candidates are well ahead in Virginia, New Hampshire, Colorado, New Mexico, and Alaska while candidates in Kansas, Texas, Oklahoma, and Nebraska are behind but gaining momentum.

Rep. Chris Van Hollen (D-Md.) stated that elections are also looking promising for Democrats on the House side of the Hill. He said that the DCCC is focusing on early contact and persuasion, launching “Get Out and Vote” campaigns in 50 districts throughout the United States. With a Democratic-controlled White House and Congress, Van Hollen said policies concerning stem cell research, children’s health care, Iraq, and gas prices would be successfully addressed.