Chris Dodd: To Blame Or Not To Blame?

by Joel Hendon⁽¹⁷⁸⁾ Red Star

Senator Christopher John Dodd, Democratic Senator from Connecticut has come under fire this week for whatever part he played in the now scandalized bonuses given to the executives of AIG after receiving $30 billion taxpayer dollars. Circumstances have arisen which points a giant finger at him although he denies that he is to blame. Let's examine those circumstances.

Remembering this, that Senator Dodd is the Chairman of the Senate Committee on Banking. A spot of importance and influence which has responsibilities of oversight of the banking industry, especially those of which the government has a vested interest.

Now, let's look at the political contribution list from AIG;

Sununu, John E (R-NH) Senate $15,950

Romney, Mitt (R) Pres $19,950

Biden, Joseph R Jr (D-DE) Senate $19,975

Baucus, Max (D-MT) Senate $24,750

Clinton, Hillary (D-NY) Senate $36,831

McCain, John (R-AZ) Senate $ 41,200

Obama, Barack (D-IL) Senate $45,111

Dodd, Christopher J (D-CT) Senate $104,300

It doesn't take a rocket scientist to figure out why this organization would have contributed so heavily to Obama's and Chris Dodd's campaigns.

Twisted facts, lies and finger pointing began as soon as the public learned of the $165 million dollars in retention bonuses which were paid to AIG key employees. First there was no one who would admit to knowing anything about the bonuses until the news became public. Just how many lies were told in that round is not known, but there were a bunch.

Then AIG officials announced that they had handed out a blue paper to just about everyone involved in November, last. Now, let's see what all was said. Following are some statements from various sources:

CNN) -- Senate Banking committee Chairman Christopher Dodd told CNN Wednesday that he was responsible for language added to the federal stimulus bill to make sure that already-existing contracts for bonuses at companies receiving federal bailout money were honored

Dodd acknowledged his role in the change after a Treasury Department official told CNN the administration pushed for the language.

Then later in the article this statement was made:

Dodd, a Democrat, told CNN's Dana Bash and Wolf Blitzer that Obama administration officials pushed for the language to an amendment designed to limit bonuses and "golden parachutes" at those companies.

Then we find an additional statement from Associated Press as follows:

"An administration official said Treasury made Dodd's staff aware of the potential for litigation (if bonuses were banned, as had been proposed), but did not demand that the provision be removed from the final bill. The official spoke on the condition of anonymity because he was not authorized to discuss the matter in public."

The Washington Post said this:

"Federal Reserve officials knew for months about bonuses at American International Group but failed to tell the Obama administration, according to government and company officials, exposing problems in a relationship that is vital to addressing the financial crisis."

And here is the real kicker when it comes to Tim Geithner from Time Magazine;

"Although Treasury Secretary Timothy Geithner told congressional leaders on Tuesday that he learned of AIG's impending $160 million bonus payments to members of its troubled financial-products unit on March 10, sources tell Time that the New York Federal Reserve informed Treasury staff that the payments were imminent on Feb. 28. That is 10 days before Treasury staffers say they first learned 'full details' of the bonus plan, and three days before the administration launched a new $30 billion infusion of cash for AIG." Prior to becoming Treasury secretary, Geithner was president of the New York Fed.

Now, I ask my readers, IF anyone did not know about the bonuses, why then would anyone change the language of the bill in secret to keep those who were to pass it from knowing? It is most obvious to this writer that all concerned kinew about them. If Chris Dodd did not know, he should have known. If Tim Geithner did not know, he should have. Go back up to the list of donations and then see why the language was changed in the bill.

Who ever was involved in the responsibility of committing this act should be prosecuted. To alter a bill to this extent which could have, might indeed have, resulted in a failed passage, may be a criminal act. It certainly should be.

Webgazine Columnist.

Article submitted Friday, March 20, 2009 & read 64 times.

Please log in to leave your comments.

» left by Jane Bullard (2 years 331 days ago.)

Joel, Wow! Your finale was right on: "Who ever was involved in the responsibility of committing this act should be prosecuted. To alter a bill to this extent which could have, might indeed have, resulted in a failed passage, may be a criminal act. It certainly should be." Keep writing on this. Thanks for all the press coverage quotes that lay out the chain of events. ~Jane

» left by Joel Hendon (2 years 331 days ago.)

Thanks Jane, for your comment. Yes, but nothing is likely to be done other than they may ask Tim Geithner to resign. They will all come out smelling like a rose.

» left by Anonymous (2 years 331 days ago.)

Joel, well let the civilian police take care of them. It seesm our regular police and investigators haven't any interest in their involvemnet? After all its all legal you know.

» left by Joel Hendon (2 years 331 days ago.)

Thanks anon, for the comment. You are probably right.

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