NEW YORK Nov 8 The U.S. council created to
oversee risks to the financial system needs to probe the
housing foreclosure mess and recommend solutions, outgoing
Democratic Senator Christopher Dodd said on Monday.
The council should "convene soon to consider the
foreclosure crisis and make recommendations to deal with it,"
Dodd said at the Securities Industry and Financial Markets
Association annual meeting.
Federal investigators are probing banks amid allegations
they used shoddy paperwork to evict delinquent borrowers from
The Financial Stability Oversight Council was set up to
identify risks to the financial system under the Dodd-Frank
regulation bill, which Dodd helped craft.
The council, which is chaired by the Treasury secretary and
composed of other regulators such as the Federal Reserve, is
due to meet later in November.
"Here's a perfect case as to whether they can do their
job," Dodd told reporters on the sidelines of the meeting.
The council is one of main pieces of the Dodd-Frank bill,
which also created a federal watchdog to oversee consumer
financial products, such as credit cards and mortgages.
Dodd on Monday urged the Obama administration to quickly
appoint a director to head the Consumer Financial Protection
Bureau. He reiterated that he did not think Elizabeth Warren,
the Harvard Law School professor who was named to advise the
White House and Treasury Department on how to set up the
agency, should be chosen.
Dodd said Warren would be a good director but that he did
not think the Senate would confirm her. Warren has been
championed by liberals, but opposed by the financial industry
and many Republicans.
Dodd is retiring from the Senate at the end of the year.
His departure comes as many other Democrats in the House of
Representatives and the Senate prepare to leave after Americans
voted them out of office in the recent midterm congressional
(Reporting by Rachelle Younglai; Editing by Leslie Adler)