Chris Dodd, who may have one of the worst records in the U.S. Senate when it comes to understanding the health of financial institutions, laughed when asked about whether the government should nationalize Bank of America.
The chair of the Senate Banking Committee, who represents Hedgeistan Connecticut, said he doesn’t think the government should nationalize the firm. He suggested that there was no need, and the decline in Bank of America’s share price was no signal of the need for a dramatic rescue.
Bank of America’s shares rallied from horrific lows following those statements.
Why anyone in the world would feel reassured by listening to Dodd is beyond us. You’d be better off asking your cat if Bank of America would survive. To take just one notorious example, Dodd was talking up the financial health of Fannie Mae and Freddie Mac as late as last summer.
“This is not a time to be panicking about this. These are viable, strong institutions,” Dodd said at a Capitol Hill press conference in July. Two months later the federal government had to take over both of those “strong institutions.”
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