US Sen. Dodd: no time now to set up RTC-type fund

WASHINGTON, Sept 17 Wed Sep 17, 2008 1:21pm EDT

WASHINGTON, Sept 17 (Reuters) - There is not enough time left in the congressional session for U.S. lawmakers to consider setting up a Resolution Trust Corp-type fund to buy up toxic mortgage assets, Senate Banking Committee Chairman Chris Dodd said on Wednesday.

"That's not going to happen now anyway. We're here for another week. It's a nice debating point," Dodd, a Connecticut Democrat, told reporters on Capitol Hill.

"The Treasury performs that function right now, they have the authority to do that," he said, adding that he thought they should "absolutely" do it.

"The Obama Administration or the McCain administration will have to assess whether they want to propose such an idea. I'm willing to entertain one," Dodd said, referring to presidential candidates Democrat Barack Obama and Republican John McCain.

Dodd also said there were other shoes that could drop before the current crisis is over.

"Until you address the underlying cause of this problem, which is the (housing) foreclosure crisis, this problem is not going to go away," he said.

"And while I don't anticipate anything as large as AIG, there are regional banks and others that can face a lot of stress -- there already are. So there are other shoes that can fall until we get to the bottom of the mortgage crisis," Dodd said.

U.S. authorities announced late Tuesday an $85 billion rescue plan for insurer American International Group (AIG.N). (Reporting by Susan Cornwell; Editing by Tim Dobbyn)

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