Senator Dodd Will Not Seek Re-election, Democrats Say

Both Mr. Dodd and Mr. Conrad had been members of the “Friends of Angelo” V.I.P. program at the bank, named after Angelo R. Mozilo, the chief executive of Countrywide.

Polling in Connecticut suggested that Mr. Dodd had been hurt both by his association with Countrywide and by criticism for his role in legislation that appeared to clear the way for bonuses to be paid to executives of American International Group, the insurance firm that received a government bailout.