"[T]oday--thanks to the extraordinary efforts of your senator, Chris Dodd--I signed a bill that restores a sense of fairness and transparency to the credit card industry," Obama said." As Chairman of the Senate Banking Committee, Senator Dodd was the driving force behind this bill. He's the one who built the bipartisan coalition that passed this crucial reform by a huge margin--90 to 5," Obama said in the e-mail. Senator Chris Dodd of Connecticut served as a Peace Corps Volunteer in the Dominican Republic in the 1960's.
Obama praises Dodd at credit card signing ceremony
Obama praises Dodd at credit card signing ceremony
By Eric Zimmermann and Silla Brush
Posted: 05/22/09 03:52 PM [ET]
President Obama went out of his way to praise embattled Sen. Chris Dodd (D-Conn.) Friday while signing major credit card reform legislation at a Rose Garden ceremony.
Dodd, the chairman of the Senate Banking Committee, is a co-author of the credit card legislation but faces a tough 2010 reelection campaign along with charges he has been too cozy with financial institutions.
“I want to give a special shout-out to Chris Dodd, who has been a relentless fighter to get this done," Obama said at a signing ceremony with lawmakers.
“Chris wouldn't give up until he got this legislation passed. He spent an entire career fighting against special interests and fighting for ordinary people, and this is just the latest example,” Obama said.
Obama repeated the praise in an e-mail to more than 100,000 Democrats in Connecticut, who polls suggest are unhappy with Dodd. The e-mail invites recipients to send thank-you notes to Dodd, along with their mailing addresses and e-mails.
"[T]oday--thanks to the extraordinary efforts of your senator, Chris Dodd--I signed a bill that restores a sense of fairness and transparency to the credit card industry," Obama said." As Chairman of the Senate Banking Committee, Senator Dodd was the driving force behind this bill. He's the one who built the bipartisan coalition that passed this crucial reform by a huge margin--90 to 5," Obama said in the e-mail.
Dodd is running behind in polls in Connecticut. During the height of the subprime crisis, Dodd drew fire for receiving a loan under a special program at Countrywide Financial. (Dodd insisits he didn't receive favorable treatment.)
Voters are upset he uprooted his family to Iowa during a run for the presidency. More recently, he drew criticism in the controversy surrounding bonuses paid to executives of AIG, an insurance firm that has received billions in government bailouts.
Sen. Richard Shelby (R-Ala.), the ranking member on Banking, also attended the ceremony, along with the key lawmaker in the House on the bill, Rep. Carolyn Maloney (D-N.Y.).
Obama said the bill would help consumers who use credit cards responsibly but nevertheless find themselves on the "one-way street" of debt.
“It's easy to get in, but almost impossible to get out,” Obama said. “With this bill we're putting in place some commonsense reforms.”
The Credit Card Accountability, Responsibility and Disclosure (CARD) Act requires 45 days notice before a credit card company can raise interest rates and would prevent rate hikes on existing credit balances until the cardholder misses payments for 60 days.
It also puts limits on a number of fees and would make it harder for companies to give credit cards to people under 21.
Obama did not mention an amendment attached to the legislation that would allow visitors to bring guns to national parks. Sen.Tom Coburn (R-Okla.) attached the gun measure to the credit reform bill, and Democrats, hoping to speed passage, grudgingly let the whole package come to a vote.
The credit card industry has long fought new congressional regulations and had the upper hand in Congress until the financial crisis erupted.
Once Obama took up the call for greater restrictions and Dodd and Shelby reached a compromise this month, the bill was all but ensured easy passage.
The industry argues that the restrictions will hamper the flow of credit to cardholders and increase fees and penalties for customers, including those with good credit.
The regulations go further than a set of rules that were issued by the Federal Reserve in December and would have taken effect in July 2010.
“With this new law, consumers will have the strong and reliable protections they deserve,” President Obama said in a statement. “We will continue to press for reform that is built on transparency, accountability, and mutual responsibility — values fundamental to the new foundation we seek to build for our economy.”
The credit portion of the bill passed the House on Wednesday by a vote of 361-64. The Senate approved the measure 90-5 the day before.
