Dodd Continues Push For Financial Reform; In Other News, Big Bad Wolf Moves For Building Code Reform

In a move that would be applauded as necessary if sponsored by virtually anyone else, Sen. Chris Dodd (D-Countrywide Financial) has decided to move ahead with financial reform legislation without support of the Republican Party, which has raised opposition to the notion of a federal financial regulatory commission and stronger regulations for the financial sector.

Dodd, if you may recall, was criticized heavily in 2008 when, as chairman of the Senate Banking Committee, he proposed legislation that would offer substantial assistance to Countrywide Financial, a mortgage lender now owned by Bank of America (NYSE: BAC) that was severely burned by the subprime mortgage crash that precipitated the financial meltdown that we are still dealing with almost two years later. News shortly broke that the legislation could be a sweetheart deal in which Dodd, using his substantial influence, swung benefits towards Countrywide after being a VIP customer with the company for the better part of the decade.

Dodd was also accused of getting favorable rates on several properties in 2003 from the company, far below what Countrywide offered to the rest of its customers. Dodd also did not disclose the fact that he was a VIP member of the company until after the controversy broke - which raises serious questions about conflict of interest issues.

The senator from Connecticutt has declined to run for re-election in 2010.

I fully support financial reform. I think the financial sector as a whole should be clapped in irons and watched like a hawk to make sure they don't seriously screw the American people again with horrific mismanagement, bungled decision-making, and outright greed. But having Dodd spearhead the movement is like having the Big Bad Wolf spearhead building code reform for pig-centric housing.

Because of this, myself and others do not predict substantial financial reform to take place any time soon. I don't particularly care if the GOP is excluded - it is no secret that they despise the word 'reform' when it applies to anything related to business. But I am not convinced that Dodd is capable of(or even interested in) passing meaningful reform.

Don't be surprised if financial stocks pop champagne corks and party it up.