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Sen. Chris Dodd, AIG Bonuses | 03/20/2009 9:05 am

Chris Dodd Takes Heat for Treasury's Bonus Snafu

By The Staff at wowOwow.com
© Getty Images

A lot of people are angry this morning.

AIG — the same beleaguered insurance giant reaping billions in taxpayer money to stay afloat, while at the same time doling out millions in bonus money — is suing the federal government for a tax refund. In the lawsuit, quietly filed last month, reports The New York Times, AIG says it wants to recoup $306 million in tax payments the firm claims were related to deals that were conducted through offshore tax havens.

Meanwhile, Sen. Chris Dodd, D-CT, is also simmering, but not necessarily at AIG itself. He’s angry that the Obama administration didn’t alert him — and the public — to bonus protections in the stimulus bill. Dodd, the Senate Banking Committee chairman, this week tried to explain how his committee loosened executive compensation language at the behest of the Treasury Department. The end result was a bill that exempted bonuses protected by contracts, like AIG’s. But Dodd said he never expected the forthcoming AIG bonus bonanza.

"Let me be clear — I was completely unaware of these AIG bonuses until I learned of them last week," Dodd said.

During a conference call with Connecticut reporters, Dodd essentially said, "Thanks a lot, Obama peeps," for not coming forth and telling the press it was the Treasury who wanted the restrictions taken out, not Dodd. For a day, Dodd endured attacks for allegedly putting "bonus protections" into the stimulus bill. One reporter suggested that Treasury Secretary Geithner had "hung him out to dry."

"Well, those are your words, not mine," Dodd said, reports The Hartford Courant. "The idea came from the administration. I was not negotiating with myself. I didn’t get my amendment passed and say, ‘I think I’ll modify my own amendment.’ Now I gather that has been cleared up to some degree, which I appreciate. But I would have appreciated it earlier."

For a senator who’s up for reelection next year, none of this bodes well. Politico notes that Dodd’s popularity is slumping, and his role in a low-interest-mortgage scandal back home, along with the overall mysterious air surrounding the stimulus spat, aren’t helping matters. Given the fact that AIG was also a campaign contributor, it’s also emboldening critics.

57 Reader Comments (so far…) Sign In or Register to comment

Libra Lady
Dodd is spinning mighty fast there…his up coming election could be fading in popularity, and he needs AIG for campaign funds….do you suppose they put anything in the "stimulus bill" to prevent any of these bail out companies to be able to donate to campaigns?  Maybe they should be deducting their taxes they owe from the bail out funds….that would be a good start!!!
By Libra Lady on 03/20/2009 9:17 am
Frannie Em

Since 1990 Chris Dodd has received $280,000 in contributions from AIG.

In the 2008 election:  

1) Obama $104,332

2) Dodd $103,900

3) McCain $54,499

Hillary Clinton came in somewhere after that.

Sen Chuck Shumer has received (since 1990) $112,000

McCain’s total since 1990 $99,000

Since 1998 AIG has spent $72.6 Million on lobbyists and contributions.  Of that, 9.3 million were for politicians.

1990 to 2004 it was split 50/50 between democrats and republicans

Since 2004 60% dems - 40% repubs 

George W. Bush $160,160 

By Frannie Em on 03/20/2009 4:15 pm
Libra Lady
No wonder AIG needed a bail out….this is uncalled for…for all parties!!!!
By Libra Lady on 03/20/2009 4:47 pm
Buh- Bye
my, my, my Frannie Em, and a hunting we shall go, huh?  you have certainly been on the hunt for info.  digging out the facts.  maybe you should be working for the news outlets. tell it like it is g/f
By Buh- Bye on 03/20/2009 4:50 pm
Frannie Em

Pi

You know what they say, follow the money. 

By Frannie Em on 03/20/2009 9:31 pm
Buh- Bye
:)
By Buh- Bye on 03/21/2009 11:59 am
Mary Quite-Contrary
Amen, Frannie…follow the cash. They all should be ashamed…on both sides of the aisle. Thank you for yoiur research and post. M Q-C
By Mary Quite-Contrary on 03/21/2009 2:31 pm
Buh- Bye
Dodd is saying that he was asked by Treasury to insert the language allowing the bonuses into the bailout.  If true, the question is, who directed Geither to request this of Dodd?
By Buh- Bye on 03/22/2009 11:59 am
Frannie Em

Pi

Good question.  I kinda think I know.   

By Frannie Em on 03/23/2009 3:07 pm
deber B
Libra, we don’t know what these companies contributed to Barack Obama’s campaign….yet.   But I’m sure we will soon find out.  It might be another devastating blow to the democrats as they learn that Barack Obama is a politician….a Chicago politician at that!   He just might lose his "aura" when the truth comes out.
By deber B on 03/20/2009 9:30 am
Libra Lady
Deber…I’m beginning to think this whole "bail out money" to companies presents a "conflict of interest"….how much did many of these candidates accept campaign funds from any of these companies that are getting the bail out money?  Wouldn’t it be interesting to find that out….barney frank wants names from AIG….how about the people getting names also??  I surely hope that with the bail out money these companies have and are going to receive should not be able to donate any of their money to campaigns to any candidate!!!
By Libra Lady on 03/20/2009 9:38 am
Libra Lady
Deber…notice the how many posts are on the crooked Dodd…hmmm..I guess they are all too busy bashing Gov. Palin on that thread….no surprise there at all!!!  Hide in the sand when it comes to the libs!!!
By Libra Lady on 03/20/2009 11:02 am
deber B
Libra, must be  in the beginning stages of "buyer’s remorse."   I know I would be by now.
By deber B on 03/20/2009 11:23 am
Libra Lady
Deber….maybe they can ask for a refund??? Just askin’!!
By Libra Lady on 03/20/2009 11:31 am
Marjorie C.

Libra:  …notice the how many posts are on the crooked Dodd…

They’ve abandoned Dodd big time.  Connecticut is not too happy with him, either.  Works for me…  let’s hope he gets replaced by a Republican.

By Marjorie C. on 03/20/2009 12:55 pm