Dodd Admits Role In AIG Bonus Controversy

[MORTARDUDE]

Courant.com
Dodd Admits Role In AIG Bonus Controversy
By CHRISTOPHER KEATING
The Hartford Courant
March 19, 2009



U.S. Sen. Christopher Dodd, already reeling in public opinion polls, suffered another political blow Wednesday with the admission that he had been involved in key legislative changes that helped pave the way for AIG to pay controversial bonuses to its employees.

In a retreat from earlier statements, Dodd said Wednesday that U.S. Treasury Department officials had approached him last month, urging him to modify an amendment to the federal stimulus bill that capped bonuses for executives at companies receiving aid.

On Tuesday, Dodd said that he was not a member of the conference committee that crafted the final compromise bill and said that the exception had not been in the bill as he drafted it.

But late Wednesday, Dodd admitted in an interview with CNN that he had been involved in the change.

"I agreed reluctantly," Dodd said. "I was changing the amendment because others were insistent."

The admission was another in a series of issues that have brought negative attention to the state's senior senator.

"It's apparent that Sen. Dodd — on a whole host of issues — has a lot of explaining to do," state House Republican leader Lawrence Cafero said. "People are having a credibility problem here. ... For a long time, there was an impression that Chris Dodd was an institution and could be there [in the U.S. Senate] as long as he wanted to. Once you believe that, that's when the wheels come off."

Dodd said he agreed to the Treasury Department's request, which made the limits apply only to future bonuses. Dodd's provision, as originally proposed, operated retroactively, meaning that it would have applied to any firm, such as AIG, that benefited from the first wave of federal assistance.

The senator said he agreed to the change to protect the compensation restrictions he was seeking. He refused to name the U.S. Treasury officials who asked him to add the language that paved the way for the bonuses, saying that much of the detailed work on the bill was done on the staff level.

"The alternative was losing the amendment entirely," Dodd said.

The political firestorm that had been simmering around the issue all day exploded with Dodd's admission. Dodd is already vulnerable when it comes to matters relating to AIG. Employees and PACs related to the financial services company have donated thousands to the senator's campaign coffers through the years.

Amber Wilkerson, a spokeswoman for the National Republican Senatorial Committee, said: "Sen. Dodd's reversal on this issue is both astonishing and alarming."

"Contrary to his statements and denials over the last 24 hours, Sen. Dodd has now admitted that he and his staff did in fact change the language in the stimulus bill to include a loophole for AIG executive bonuses."

Dodd said his comments were not a reversal, although when asked by CNN what had changed in his understanding between Tuesday and Wednesday, the senator replied, "Going back and reviewing it. … I apologize if we had some confusion."

Still, he said in a statement: "Reports that I changed my position on this issue are simply untrue. I answered a question by CNN last night regarding whether or not a specific date was aimed at protecting AIG. When I saw that my comments had been misconstrued, I felt it was important to set the record straight — that this had nothing to do with AIG."

The firestorm around Dodd is the most intense ever for the veteran politician who is known as one of the most savvy political players nationally. In Connecticut, his name recognition is as close to 100 percent as possible, and he normally wins re-election in a blowout.

But this year is different.

In a telephone interview with The Courant on Wednesday night, Dodd said he knows he has been enmeshed in multiple controversies recently, including the refinancing of his two mortgages with Countrywide Financial, his purchase of a 10-acre cottage in Ireland and the latest firestorm over the AIG bonuses.

"I've been getting whacked around the head for the last eight or nine months — part of it my own fault for not stepping up earlier," Dodd said.

Concerning the poll ratings that show he is in a statistical dead heat with Republican Rob Simmons in a potential matchup in 2010, Dodd cited the national and state economies as being a major problem for an incumbent politician.

"The backdrop doesn't help," Dodd said. "Jobs being lost. Homes being lost. There are obviously exceptions to this, and we know it."

When asked about speculation concerning his possible retirement by 2010, Dodd said, "I'm running. I haven't announced anything yet. ... I want to win. What I want more than winning is to do what I'm supposed to be doing."

Dodd said several times that it was ironic that he was being criticized regarding the amendment, saying that he had no co-sponsors and was the only person who spoke in favor of it originally. He flatly tried to block companies receiving federal bailout money from paying bonuses in the original bill.

"It's somewhat ironic that the people who thought I had gone too far," Dodd said, "are now saying I didn't go far enough."

[39mto39g]

Dodd is an idiot
Timothy Geithner is an idiot
Christina Romer is an idiot

AIG had contracts with the people that got the so called "Bonus"
There was no bankruptcy so the contracts were still in place, AIG had no money to pay these contracts until Obama gave AIG a unconditional check. Now AIG has money, and now it must also pay it's contracts.
Why is that so hard for people to understand?
It's not AIG's fault that these people are idiots. The media pumps the misinformed public so that there are death threats to the people at AIG. why would the media do this?

Any company that has contracts and debt has to pay the contracts and the debt or file for bankruptcy. The above people gave AIG money without and conditions and without bankruptcy and also in Dodds case a OK to pay the contracts?
So who are the "Bad" people hear?
Now Our stupid congress has introduced a bill to get back the 165 million that AIG paid for it's contract debt, and apparently the constitution has little meaning to them. Now it will cost the taxpayers 300 to 400 million to get back the 165 million and in the end the 165 million will be paid anyway, so that total that the taxpayers will shell out is 565 million for the 165 million contracts. Sounds like a plan to me.
Idiots.

[SuperScout]

Add another idiot to the list: Barack Hussein Obama.

Here we have yet another Democrat caught in a lie: "I took the amendment out before I put it back in." Sounds like John Kerry all over again. They - Obama, Dodd, Geithner - they all knew that the bonus provisions were in the bill, making them all liars.

How can any leader of another country trust this group of bozos currently in the White House? From not knowing what electronic system work where to lying through their teeth, what calamity is next?

[MORTARDUDE]

I keep looking and listening, thru all of this "bonus" crap, for someone to give one, just one, example of what someone did to deserve a $ 1 Million dollar bonus.............

Larry

[39mto39g]

In AIGs case the bonus were not bonus's, the money paid to these guys was for contracts they had. The Media and congress call them bonus.
A little over a year ago AIG had 2.8 trillion in assists and debt. There are many branch's of AIG within AIG. These guys had contracts to lower that 2.8 trillion to a more manageable. So each one in there own department got rid of assists and paid debt, Fast forward one year. The people in these departments have the Assists and Debt of AIG down to 1.6 trillion. Now it comes time to pay the contracts of these people and AIG doesn't have the money to pay. Along comes OBAMA and the Democrats and hand AIG a huge Check with no strings.
AIG Still owes the money to these people for their contracts and now AIG has the money to pay the contracts. AIG has to honor a binding contract unless it is under bankruptcy.
Our Government and treasury department are just stupid. Not AIGs fault.
The media has filled peoples heads with miss information.
Congress pass a bill to take 90% of Bonus's? Apparently the constitution means nothing to Democrats and republicans that voted for this bill. THEY CAN'T DO THAT.


Ron

[Packo]

Although I see what your saying, in a capitalist system people are paid what the corporation feels they're worth. I don't hear people complaining about professional athletes getting 126 million dollar contracts for 3 years of playing a game, plus bonuses if they perform more than what their contract says. I also didn't hear any complaining when many of these companies were making a profit and the stock market was at or near 11,000 and all of our 401K's were doing great. Now, due to many many factors, the stock market is down to 7,000+, many 401K's are not doing well, (my wife has lost 80K and her's weren't that big...just years of working), and everyone is complaining about bonuses, that as you wrote, Dodd and his cronies knew all about. Give this congress and President time, and they will be going after everyone that makes big money. Many years ago my uncle was Vice President of Goodyear, head of racing division, and public relations. He made big bucks. He also was never home. Probably worked 80+ hours a week, and was flying, commercial, all over the US and the world. Hourly.....an auto worker probably made more. Another good example is our own Pighumper. He was making great money with Sarah Lee Corp. Much better than me with all my years of Government experience....BUT, I worked 40 hours a week w/weekends off. Dan...when you added up all his hours, was making less an hour. Corporation people don't just sit in big chairs, smoke cigars, and play golf. They'd be gone if they did. Many never see their families and work their butts off more than any 40-80 dollar an hour auto-worker. (just using them as an example) They don't get "overtime". So, I don't envy those that work their asses off for a living, no matter what they do. We have all made choices in our lives. My uncle was always a little upset with me for not going to work for him at Goodyear, in the RACING DIVISION. I just knew I wasn't a corporate person and made my choice. I don't regret the decision, but often wonder what my life would have been had I taken the job. Class envy is a bad thing and is being fostered in this country even more than usual. It's sad.

Pack