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
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
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."