WASHINGTON-Sen. Chris Dodd said last week he plans to remain chairman of the Senate Banking Committee and not assume the chair of the Health, Education Labor and Pensions Committee, which is setting the pace on the healthcare reform.
Dodd was rumored to be interested in chairing the health panel, where he is next line, after the death last month of its chairman Ted Kennedy of Massachusetts.
Dodd, the second-ranking Democrat, had stood in for Kennedy on the health panel for much of the past year, leading the drafting this summer of one of several bills that would overhaul the U.S. medical system.
Dodd said he wants to see several major initiatives being worked on by the banking committee to their end, including regulatory reform and the proposal to create a consumer financial protection agency.
Dodd, in his fifth six-year term, has been in the eye of controversy in recent months because he was one of several lawmakers who received a discounted mortgage from Countrywide Financial Corp., the failed mortgage giant that was acquired by Bank of America.
Observers said last week they believe Dodd's decision will lead to a more aggressive effort at regulatory reform. Dodd has been outspoken about the abuses of the financial services industry in recent years, particularly in regard to mortgage lenders and their unwillingness to help rework loans facing foreclosure. A focus on such issues could increase because he faces a tough re-election battle next year.
The House Financial Services Committee is scheduled to mark-up, or hold a drafting session, on the consumer protection agency next week. The Senate Banking Committee is expected to use the House's bill as a format for its own draft. The consumer protection bill eventually is expected to be combined with efforts at regulatory reform.
