Rob Menendez actually said...

"Right now, who is the biggest holder of this liability? It is all of us as Federal taxpayers through the GSEs and the FHA?"

"I think the way you have to deal with negative equity is by doing principal reductions."

"I appreciate moral hazards as much as anyone else. I think there are moral issues into how people were led into mortgage products they should have never been into."

"The Chair has been extremely liberal here"