Chris Dodd Cleared by Senate Ethics Committee

The Senate Ethics Committee has cleared Sen. Chris Dodd (D-Conn.) and Sen. Kent Conrad (D-N.D.) on allegations that they violated ethics rules by receiving mortgages through Countrywide Financial's "VIP" program for influential borrowers. The committee did, however, admonish both senators for not being more "vigilant" in their mortgage applications to avoid even the appearance of impropriety.

In a letter to Dodd, the committee writes, "The Select Committee on Ethics informs you that after an extensive year-long investigation, it is dismissing a June 13, 2008 complaint from Citizens for Responsibility and Ethics in Government, which requested that the committee investigate whether mortgages you obtained from Countrywide violated the Senate Gifts Rule."

"While the Committee finds no substantial, credible evidence as required by Committee rules that your Countrywide mortgages violated Senate ethics rues, the Committee does believe that you should have exercised more vigilance in your dealings with Countrywide in order to avoid the appearance that you were receiving preferential treatment based on your status as a Senator."

Dodd is the chairman of the powerful Senate Banking Committee, while Conrad chairs the Senate Budget Committee.

In letters sent to both Dodd and Conrad Friday, the committee details its year-long investigation into the allegations of misconduct against the two senators. Both letters were signed by all six members of the bi-partisan committee, including the committee's chairwoman, Sen. Barbara Boxer (D-Calif.), and its vice-chairman, Sen. Johnny Isakson (R-Ga.).

Despite the Senate dismissal, Rep. Darrell Issa of California is continuing to push an investigation into Countrywide's VIP program through the House Oversight Committee. Issa is the top Republican on the panel and has complained that Democrats have not vigorously investigated fellow Democrats involved in the scandal.

Two weeks ago, testimony leaked to the Associated Press revealed that a witness, deposed by Issa's staff, told investigators that Sens. Dodd and Conrad knew they were getting preferential treatment from the company despite the fact that they repeatedly denied knowing a VIP program existed. The witness had worked directly with the CEO of Countrywide Financial, Angelo Mozilo, in the past.