On National Public Radio this morning, Sens. Chris Dodd (D-Conn.) and Judd Gregg (R-N.H.), the top Democratic on the Senate Committee on Banking, Housing, and Urban Affairs Committee and top Republican on the Senate Budget Committee, agreed on at least one thing: that the major federal bailouts are over -- at least for the time being. Dodd told listeners that there were no other major financial institutions in as much trouble as AIG, Freddie Mac or Fannie Mae had been before they were rescued by federal intervention.
Gregg, asked if he agreed that there were no further shoes about to drop, agreed with his colleague. Dodd clarified that there are likely to be more bank failures around the corner, but that they would be smaller, regional banks without the potential to topple the global financial structure.
CORRECTION AND UPDATE: The original post wrongly said Sen. Richard Shelby (R-Ala.) joined Dodd on the air. I heard wrong--it was Gregg. Here's the audio and a transcript of the relevant exchange:
Gregg: “I don’t see any shoes out there that meet the standards of Freddie Mac, Fannie Mae or AIG.
Dodd: “I agree with that.”
Gregg: “I don’t see any entities out there that appear to be in trouble that meet this type of standard--that they would melt down the entire system if the went under.”