Chris Dodd

Thank you, Senator. Those are good questions and ones we have spent a lot of time on over the last 2 years.

The idea that there is this level playing field between the borrower and the lender... is questionable.

We need to get as much information because... it would be very, very helpful.

The safe harbor, I think, is critical.

Are we adequately covering the second--are we going to be able to deal with the second lien holders?

It would appear there would be obvious benefits to the principal reduction in that it would allow people to start to accumulate equity back in their homes, the wealth creation idea.

Could you share with us briefly why you decided to opt for the affordable payment plan rather than the principal reduction plan?

I think it is one of those moments where the kind of cooperation of some of our major media outlets could really be of help at a time like this.

I think it is critically important that the very people we are trying to help here understand what this is and how it works and what they need to do and can do.

We need to find a way to incorporate that into something we do here pretty quickly.

We are fortunate to have on our Committee, of course, Mel Martinez who knows exactly what it is like to sit in that chair.

Senator Schumer and others have raved about you and the tremendous work you have done in New York.

The Committee will come to order, and let me welcome our witness and congratulate you again, Secretary Donovan, for your confirmation and for your willingness to do this.

Thank you, Mr. Chairman.

The public-private partnership idea is one that I think has some value.

We need to be careful to make sure we are not going to contribute to the very outcome we are trying to avoid.

It would seem to me you have all the authority in the world.

I believe the authority exists under the Congress for you to be able to do that under TALF with municipal issues.

Thank you very much, Senator.

The announcement of the stress itself has, I think, created stress in a sense in terms of how the private sector looks at the institutions.

I think part of this is that, remember, we do have a legal procedure.

I would hope there is no additional authority that you need at the Fed in order to be able to exercise that authority.

AAA-rated bonds out of municipalities for schools and hospitals has got to be at least as creditworthy as a student loan.

Clarity is very important, the transparency you are talking about.

Had we not acted, we would be having a very different conversation in this room today.