Will Senate Banking Committee Derail Treasury Secretary Bailout Plan?

Chris Dodd, chairman of the Senate Banking Committee, could see it coming a mile away: the historic bailout of the American stock market that was put together by Treasury Secretary Henry Paulson and that that involves various Senate Banking Committee members, the House Financial Services Committee, and of course Democratic Senator Chris Dodd himself, is not as cut and dried as he might have liked.

What looked a lot like a shotgun wedding complete with pregnant bride, glowering father and gun-toting brothers, is now -- according to Market Watch -- hitting a glitch: law makers are not willing to play ball blindfolded. On the one hand are the proponents of the bailout that assert a financial collapse of the American stock market and banking system is imminent if the $700 billion plan is not approved right now.

On the other hand, Chris Dodd made the rather poignant observation that the plan lacked detail, oversight, and of course any help for Main Street. Critics find it troublesome that the same high ranking officials and company execs that seem to have steered the economy into the mess it is currently in, will also be on the receiving end of the bailout money.

What the chairman of the Senate Banking Committee would like to see are mortgage bailouts for homeowners and regulation of the pay and bonus packages that have allowed execs - much like Franklin Raines of Fannie Mae infamy - to enrich themselves while their companies were mimicking the Titanic.

Of course, Chris Dodd has his own credibility problems, seeing that he is one of the beneficiaries of the "Friends of Angelo" list that, as the Conde Naste Portfolio suggests, allowed him to get a Countrywide Financial mortgage at below market rate. Having received a waiver on lender fees, points, and even borrowing rules, Senate Banking Committee Chairman Chris Dodd will find it hard to stay strong and remain credible on the issue at hand.