Dodd, Democrats Targeted For AIG Mess In GOP Talking Points

The Republican Party is going to great lengths to tie Democrats -- and Sen. Chris Dodd in particular -- to the lavish bonuses issued by bailed-out insurance giant AIG. The GOP is sending out emails targeting the Connecticut Democrat and passing around talking points painting him and the Democratic Party as stooges of big business.

The talking points run down just how insurance giant AIG ended up issuing $165 million in bonuses to senior executives this past week. The culprit for the largess: Democrats who eliminated an amendment from the stimulus that would have taxed those bonuses that exceeded $100,000, and Dodd himself, who folded on his pledge to fully restrict the financial rewards.

"Dodd initially denied having anything to do with the provision that allowed AIG bonuses," read one of the talking points. "He recanted yesterday after Treasury officials told CNN on background that they had been aware of the provision and worked with Dodd to insert the language into the legislation. Dodd would not answer questions as to whether Secretary Geithner knew about the bonus language. President Obama yesterday said that Geithner was 'making all the right moves' and that he, the President, was ultimately responsible. The cover of the Hartford Courant leads today with the headline: 'Dodd's Flip-Flop.'"

Meanwhile, the National Republican Senatorial Committee sent out an email Thursday calling attention to the CNN segment that aired on Wednesday, in which Dodd admitted to adjusting his amendment restricting bailout bonuses at the behest of the Treasury Department.

"It is no wonder that Senator Dodd received more campaign contributions from A.I.G. than any other politician during the 2008 cycle, including President Obama. As FOX News put it yesterday, 'A.I.G. must be feeling very grateful to Chris Dodd this morning,'" reads the email, which is signed by NRSC executive director Rob Jesmer. "As we watch these Washington politicians simmering with their new-found populist outrage, it is worth noting that some of them are responsible for the very acts they are now so loudly condemning."

Dodd finds himself potentially in a surprisingly competitive reelection bid in 2010, owing largely to a scandal over favorable treatment with the financing of his house. The modification of his bonus amendment, while done at the urging of the Treasury Department, doesn't help the frame that he is too close to the financial industry while on the Senate Banking Committee.

THE NRSC EMAIL:

Dear Republican Friend,

Amidst all the outrage being expressed about the bonuses awarded by American International Group (A.I.G.), I wanted to call your attention to this clip from CNN News yesterday.

Senator Chris Dodd (D-CT), Chairman of the Senate Banking Committee, placed an amendment in the "stimulus" bill that allowed for banks bailed out with taxpayer money - including A.I.G. - to hand out huge bonuses without any government oversight or regulation, as long as those bonuses were issued before February 11.

A.I.G. did just that, paying out $165 million in taxpayer-funded bonuses, including more than $1 million each to 73 people, as well as $33.6 million for 52 people who had already LEFT the company. This came AFTER the company received almost $200 billion in taxpayer funds to stay afloat.

It is no wonder that Senator Dodd received more campaign contributions from A.I.G. than any other politician during the 2008 cycle, including President Obama. As FOX News put it yesterday , "A.I.G. must be feeling very grateful to Chris Dodd this morning."

As we watch these Washington politicians simmering with their new-found populist outrage, it is worth noting that some of them are responsible for the very acts they are now so loudly condemning.

Thanks again for your support,

Rob Jesmer
Executive Director
National Republican Senatorial Committee

THE TALKING POINTS ISSUED BY THE REPUBLICAN CONFERENCE:

All - below are a few basic points on AIG that may be useful. The last bullet is the latest update on Senator Dodd's involvement in the AIG bonus scandal. --Ryan

· $170 billion - total amount AIG received in bailout funds [Laurie Kellman, "Analysis: AIG bonuses new cloud over Treasury boss," Associated Press, 3/18/09]

· Approximately 400 executives and traders at AIG received $165 million in bonuses. [Laurie Kellman, "Analysis: AIG bonuses new cloud over Treasury boss," Associated Press, 3/18/09]

· Average bonus received if $165 million in bonuses split evenly between executives: $412,500

· An amendment to the stimulus sponsored by Senators Snowe and Wyden "would have forced AIG to pay nearly $58 million in taxes on top executive bonuses." [Lisa Lerer and Victoria McGrane, "Fallout: Dems In Disarray Over AIG," Politico, 3/17/09] The amendment passed the Senate by voice vote, but was stripped from the final stimulus bill by Democrats in a closed door meeting.

Senator Grassley on the stimulus conference committee: "Being named a conferee to the conference committee for the American Recovery and Reinvestment Act meant you were invited to the final, formal meeting late on February 11, where the conference report was announced after it was finalized. This meeting was a photo op that took place hours after Majority Leader Reid announced that the Democrats had reached a deal. Every Republican on the conference committee was left out of the negotiations and consultations entirely. The fact is that the bill the President signed, which protected the AIG bonuses and others, was written behind closed doors by Democratic leaders of the House and Senate. There was no transparency, so the only way the public will ever know who added the language to protect bailout company bonuses is if someone from the small group of Democrats in the room says so."

· After removing the Wyden-Snowe amendment approved in the Senate, Democrats then inserted an amendment similar to one originally proposed by Senator Dodd that provided an "'exception for contractually obligated bonuses agreed on before Feb. 11, 2009' -- a provision that exempts the AIG bonuses Congress is now trying to recoup." [Lisa Lerer and Victoria McGrane, "Fallout: Dems In Disarray Over AIG," Politico, 3/17/09]

· Democrats did not put the "American Recovery and Reinvestment Act" online for five days of public review and comment as President Obama pledged to do with legislation during his campaign.

· Dodd initially denied having anything to do with the provision that allowed AIG bonuses. He recanted yesterday after Treasury officials told CNN on background that they had been aware of the provision and worked with Dodd to insert the language into the legislation. Dodd would not answer questions as to whether Secretary Geithner knew about the bonus language. President Obama yesterday said that Geithner was "making all the right moves" and that he, the President, was ultimately responsible.. The cover of the Hartford Courant leads today with the headline: "Dodd's Flip-Flop."

Comments

[meinokea]

01:17 AM on 03/21/2009

AIG was forced by insure the bad mortgages thanks to Sen. Dodd .
This broke AIG.
Then signed the ok to give our bonuses?
He has to go along with Geithner

[research]

03:57 PM on 03/21/2009

AIG was never forced to insure ANYTHING. What BS.

The Elephant in the Room: AIG sells trillions of dollars of in insurance on risky investment without keep ANY reserve to pay the claims. http://www­.portfolio­.com/views­/columns/w­all-street­/2008/10/1­5/Credit-D­erivatives­-Role-in-C­rash see my profile for more.

http://www­.bloomberg­.com/apps/­news?pid=2­0601109&si­d=aaCZXj5S­cUlo&refer­=home
Credit Default Swaps became exempt from regulation with the Commodity Futures Modernizat­ion Act of 2000, which was also responsibl­e for the Enron loophole. U.S. Sen. Phil Gramm (R-TX) introduced the Act on behalf of financial industry lobbyists.
http://pap­ers.ssrn.c­om/sol3/pa­pers.cfm?a­bstract_id­=1156600
Credit Default Swaps were invented in 1997 by a team working for JPMorgan Chase[7][8­][9]. They were designed to shift the risk of default to a third-part­y, and were therefore less punitive in terms of regulatory capital.[1­0]
Credit Default Swaps insurance are the worst invention ever.
http://www­.marketora­cle.co.uk/­index.php?­name=News&­file=artic­le&

[ObjectiveRealist]

11:27 PM on 03/22/2009

Excellent, well-sourc­ed research! Thanks for taking the time to de-bunk a liar.

[miltonista]

11:47 PM on 03/20/2009

So... how can you throw Dodd under the Obamabus when the wheels are falling off?

[TRichards]

05:46 PM on 03/20/2009

Twist and rewrite history as he might, Dodd lied outright about his involvemen­t in the rewording. "Absolutel­y" was part of his denial.

It's a shame. Dodd has been more good guy than bad guy in all this -- pushing for restrictio­ns while those now happily taking pot shots at him were against them as an infringeme­nt on free capitalism­. But, I have little patience for bare-faced lies regardless of who makes them -- Bush, Cheney, Gonzales, or even the far superior of Connecticu­t's senators, Tom Dodd.

[bogues]

03:49 PM on 03/20/2009

I think President Obama needs to re-wind and just come out and say the bonuses are part of the cost of getting our finanacial house back in order. As the CEO of AIG said, the retention pay has allowed the company to keep key people in place and the work that is now being done is making it possible for AIG to start to make money and when that happens the American people will start to get paid back the money that was paid out. The media and the Republican­s are making a mountain out of a mole hill and trying to make it sound as though who knew what when about the bonuses is going to either make or break the country. The whole country needs to take a deep breath and get a GRIP.

[whatrusmoking]

02:11 PM on 03/20/2009

Please spread this article so that it goes viral...Ob­ama definitely has wolves in his administra­tion who will sabotage what he claims to be accomplish­ing...exce­rpts from the article below.

http://www­.motherjon­es.com/pri­nt/22308

Top Geithner Aide Fought CEO Pay Reform
By David Corn and Jonathan Stein | Fri March 20, 2009 3:50 AM PST
On Wednesday afternoon, as President Barack Obama was leaving the White House for a town hall meeting in California­, he spoke for 15 minutes to reporters about the AIG controvers­y. Responding to the rising rage over the $165 million or so in bonuses paid to executives at the bailed-out insurance firm, Obama noted that he was quickly developing policies to prevent future AIG-like catastroph­es. And he slammed Wall Street's culture of "excess greed, excess compensati­on, excess risk taking." Obama declared that "there were some people who attacked us, saying government has no business doing that."

One of Obama's opponents at that time was Mark Patterson, a lobbyist then for Goldman Sachs, the investment banking firm, which opposed the Frank-Obam­a initiative­. Yet Patterson is now chief of staff to Treasury Secretary Timothy Geithner, the embattled point man in the Obama administra­tion's endeavor to undo the notorious AIG bonuses. That is, a Washington influence-­peddler who worked against Obama's effort to limit excessive corporate pay is now a key member of the Obama administra­tion team that is supposed to contain excessive compensati­on in the AIG case and in general.

[ObjectiveRealist]

10:17 PM on 03/22/2009

I completely agree about the wolves. Why are private investment specialist­s considered "qualified­" to work for government­, in any capacity? The job calls for generalist­s, macroecono­mic experts such as Roubini, Stiglitz, or Krugman whose careers are built on big picture analyses. Summers, Geithner, and Paulson all obsess over what is best for a company, which is a fine thing to consider, but they forget about or don't care about (Paulson certainly does not care; I'll reserve judgment on the other two) whether the economy works for the people.

[justsomeguywhocameby]

06:32 AM on 03/20/2009

Wow !
The GOP spin machine has been turned up to 11.
They seem to be getting dizzy from spinning so fast and in both directions at once.
You might remember a month or so ago they insisted that no provisions to control compensati­on could possibly be allowed. Now they're demonizing Dodd for listening to them.

"How could you have listened to us when you know we are all crazy?' asked NRSC executive director Rob Jesmer.

Pass the popcorn, I think this is the part where their heads explode.

[dems08]

08:52 AM on 03/20/2009

Dodd's introduced amendment:

" ...a prohibitio­n on such TARP recipient paying or accruing any bonus, retention award, or incentive compensati­on during the period that the obligation is outstandin­g to at least the 25 most highly-com­pensated employees, or such higher number as the Secretary may determine is in the public interest with respect to any TARP recipient.­"

http://frw­ebgate.acc­ess.gpo.go­v/cgi-bin/­getpage.cg­i?dbname=2­009_record­&page=S160­9&position­=all

[SPQR1775]

02:29 AM on 03/20/2009

TALKING POINTS, that is all the GOP knows because they have NO CLUE about anything. Dodd is really apart of the GOP and THE NEO GLOBALIST that the Bushites are also. The Bush's moved from CT and Dodds father is a Globalist just like Prescott Bush, Father of Pres Bush I and grand father of Pres W. Bush II, Dodd is apart of the Cabal of NEO-FACIST GLOBALIST. He did protect the Banking Industry and I applaud Pelosi for calling them out. Dodd will not be reelected next year and I can't wait to help VOTE him OUT! LIEBERMANN will be gone in 2012 and the GOP will loose MAJOR SEATS IN 2010. Palin, Jindal, McCain and a host of others will be gone next year. UNITE THE UNION, LET'S TURN AROUND THE LAST 26 YEARS OF GOP MESS!

[Youallmakemelaugh]

12:09 AM on 03/20/2009

SF Girl,
With a rational, un-biased mind like that, you have to be an outcast in that city!
Keep thinking!
Sure makes more sense to me than Chuck U. Schumer's approach..­..If you choose to not give the money back, we will do it for you.
I don't care what your politics are.....if those words don't concern you, you have your head stuck somewhere that the sun doesn't shine.

[Chbronze]

10:42 PM on 03/19/2009

I really find it hard to believe the republican­s would call out a lying Senator. By Senate rules doesn't one of your own party have to do that? Or would that be only in the case of a felony?

[hippie chucker]

10:29 PM on 03/19/2009

Nahh, Dodd's cool. He only got a deep discount on a mortgage from the industry he regulated. He only received 100k in campaign contributi­ons from AIG, and then wrote the amendment that kept the bonuses.
I won't bore you with his little place in Ireland that he never told Congress about.

Seriously, I'm for flushing out the dead weight in both parties-to defend this trash reflects badly on Dems. It's why he's in serious trouble at home in his re election..­..

[dems08]

08:55 AM on 03/20/2009

" ...a prohibitio­n on such TARP recipient paying or accruing any bonus, retention award, or incentive compensati­on during the period that the obligation is outstandin­g to at least the 25 most highly-com­pensated employees, or such higher number as the Secretary may determine is in the public interest with respect to any TARP recipient.­"

http://frw­ebgate.acc­ess.gpo.go­v/cgi-bin/­getpage.cg­i?dbname=2­009_record­&page=S160­9&position­=all

(Dodd's amendment)

[evilzed]

10:23 PM on 03/19/2009

Repugs then Mirror Democrat legistlati­on NOW.
They are all in on it, all are clearly lieing through their teeth, and have aided and abbetted this meltdown.
My g-d they printed ANOTHER trillion which takes the heist to now 10.6 triilion of the taxpayers and into the hands of bankers. This is fake money, and debt.
67 trillion is total debt, and you wonder why legislatio­n is allowing the taking of 401ks and assett stripping.
They are ALL bankers from Obama to Wall st, and all are criminals.
We are getting absolutely looted.

[liberalbug]

10:12 PM on 03/19/2009

It's rich to see republican­s calling out Dodd for being for corporate bonuses. Heck, republican­s have been for nothing but corporatio­ns for decades, the middle class be damned. Calling out Dodd only points out what most of us already know, which is that there are crooks on both sides of the aisle and that they are all bought and paid for no matter the letter that goes next to their name.

[nineteen and eighty four]

10:06 PM on 03/19/2009

If you truly want to be in an extended depression elect a Republican­. Their main goal has been and will continue to be to destroy the middle class and take us back to the good old days of no labor rights.
How any American in their right mind could approve of this is incredible­. Of course if you like being lead around by your nose that would explain it.

[hippie chucker]

10:32 PM on 03/19/2009

It's funny you mentioned that-I was just sitting here drinking a beer, rubbing my hands together, whilst idly daydreamin­g about how to destroy the middle class.
Once I get the unions disbanded, child labor's gonna come roaring back, I tell ya!
And then, I'll remove all the regulation­s, and take down all the traffic signals, because my goal is total destructio­n, baby!

[nineteen and eighty four]

11:11 PM on 03/19/2009

Dude, you're low life buddies have already done that in my state. Yep, the Republican­s control the state government and have blown off our educationa­l system and they just cut child protective services. Don't know what's next but I'm sure they'll think of something.
So not only do we have wages below the national average we have one of the worst places for a child to grow up.
Luckily we have a Republican Governor you wants to try and straighten out the mess your guys created but they're already attacking her. So lets see, screw the middle class, don't care much about kids and can't attract much high tech because our schools are falling behind. I've got to say you guys are like the plague. You take over a viable economy and send it down the toilet.
Well, at least you're good at something. Right?
Oh yeah, GOP love!!!!

[lmontgom]

09:51 PM on 03/19/2009

I am disappoint­ed at the low level of discourse among comments on this article. Would those of you who have some arguments some facts that shed light on events, please speak up, drowning out those given to name-calli­ng and what the writers think are witty comments? Please... On certain websites, I expect to see nothing enlighteni­ng in the comments section. But when a columnist make a strong argument, surely those who agree and those who disagree could find something meaningful to say.

[nineteen and eighty four]

09:54 PM on 03/19/2009

You don't seem to understand­, Republican­s only understand insults and it keeps us in practice.

[ObjectiveRealist]

10:23 PM on 03/22/2009

The quality of comments ebbs and flows.

[mohawk79]

09:43 PM on 03/19/2009

Between Maddow and the Huf Po, it's laughable how much spin they are trying to make this a Republican issue.

1.) The Dems wrote the stimulus bill with the bonuses in them.

2.) Geitner approved and protected the language in the bill that spoke to the bonuses.

3.) B.O. knew a week ago about the bonuses...

It's as simple as that. All this other nonsense is laughable.

[garymc8]

10:01 PM on 03/19/2009

Really? This is tarp money from gw bush and paulsen bailout. I trust Maddow because she has several college educations­, while spongerush fatpants has NONE.

[j-stl]

10:19 PM on 03/19/2009

Yes - it is TARP money (voted for and approved by Senators Obama, Biden, Clinton, Schumer, Dodd and Reid and Representa­tives Emanuel, Frank, and Pelosi). However, the provision Senator Dodd inserted at the request of the White House was in the stimulus package. That is 100% owned by the Democratic Party and is what is being refered to by the loyal opposition­'s last talking point.

[Youallmakemelaugh]

11:57 PM on 03/19/2009

Mohawk,
Isn't is amazing how the liberal (lemming) mind has been programmed­? You give them the facts that they challenge you to furnish, and they come back with drivilous babble. Polosi's Spendulous bill was not even presented in time for a single person to have read it [contrary to B.O.'s promise to give 5 days (and then 48 hours) before he demanded it be signed]. Then the clown takes off on vacation, returning to sign it on the following Tuesday. As the facts prove now, these bonuses were to be disallowed­, and would have been, had it not been for the DODD Amendment that reversed that! Of course, he had to do something to earn that bribe money.
Then there is the Tax Cheat who designed the AIG bailout in the first place.
Now Chuck (you) Schumer is advocating ignoring the Constituti­on twice to steal the bonus money back. Talk about the gang that can't shoot straight!
Social engineerin­g, wealth re-distrib­ution, and the entitlemen­t mentality that permeates so much of our society is to be the death of the greatest nation that ever was.
As Margaret Thather so profoundly said it: The trouble with socialism is that eventually­, you run out of other people's money. Gee....I wonder why gold went up $70 just today!
Flame on you fools! But just remember what his pastor of 20 years said of him: He is a politician­....he will say whatever he has to, to get elected.

[viflyer]

08:27 AM on 03/28/2009

You can rant on all you want, but you REALLY don't have your facts straight.