For the past 2 years, “Friends of Angelo” Mozilo, Senators Chris Dodd and Kent Conrad have denied knowing they got a special deal on their mortgages from Countrywide Mortgage. Now in testimony before investigative panels, an employee who worked in the VIP section of Countrywide is blowing the whistle on these 2 Senators.

What is galling is that while Countrywide was writing thousands of mortgages that were doomed for failure and helped lead us into the housing crisis, Senator Chris Dodd was overseeing the Senate Banking Committee that regulated the company.

And yet he is telling the world that he has done nothing wrong.

Robert Feinberg, who worked in the Countrywide’s VIP section, told congressional investigators last month that the two senators were made aware that “who you know is basically how you’re coming in here.”

“You don’t say ‘no’ to the VIP,” Feinberg told Republican investigators for the House Oversight and Government Reform Committee, according to a transcript obtained by The Associated Press.

The next day, Feinberg testified before the Senate Ethics Committee, an indication the panel is actively investigating two of the chamber’s more powerful members:

—Dodd heads the Banking Committee and is a major player in two big areas: solving the housing foreclosure and financial crises and putting together an overhaul of the U.S. health care system. A five-term senator, he is in a tough fight for re-election in 2010, partly because of the controversy over his mortgages.

_Conrad chairs the Budget Committee. He, too, shares an important role in the health care debate, as well as on legislation to curb global warming.

Both senators were VIP borrowers in the program known as “friends” of Angelo. Angelo Mozilo was chief executive of Countrywide, which played a big part in the foreclosure crisis triggered by defaults on subprime loans. The Calabasas, Calif.-based company was bought last July by Bank of America Corp. for about $2.5 billion. AP IMPACT.

Makes you think of this bit by John Lovitz:

Related posts:

1. Countrywide Mortgages Friends Of Angelo Program Investigation Stalled
2. Countrywide’s Mozilo Charged With Securities Fraud and Insider Trading by S.E.C.
3. Former Countrywide Executives Take Advantage of Down Real Estate Market
4. How Will Fannie and Freddie Deal With The Second Mortgages?
5. Senator Feinstein Offers Help To FDIC Who Then Awards Above Market Contract To Husband