by James Oliphant
Sen. Christopher Dodd, accused by Republicans of writing a loophole in the economic stimulus bill that enabled the $165 million in bonuses to be paid to executives at American International Group, Wednesday blamed the Treasury Department for the change in the bill.
In an interview with CNN, Dodd said Treasury officials approached him in February and asked that he scale back a provision in the stimulus bill capping bonus payments to executives at firms that received government money.
Dodd said he acceded to Treasury's request, which made the limits on bonuses prospective only. Dodd's provision, as it was originally proposed, operated retroactively, meaning 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. "The alternative was losing the amendment entirely," Dodd said.
On Tuesday, he had denied a role in the change.
But Dodd said that AIG's bonuses played no role. "I don't believe anyone had any idea, I certainly didn't, that a month-and-a-half later from February, we would be sitting here talking about AIG and the bonuses that they are receiving for their retentions, these $165 million," he said in the CNN interview. "So that was never a part of the consideration."
Dodd said Treasury officials--whom he did not identify--expressed concern that limiting bonuses retroactively could trigger lawsuits.
Treasury's actions at the time would have been consistent with the stance it took then toward Dodd's amendment. In early Feburary, Obama administration officials were dismayed when Dodd ignored Geithner's recommendations on executive pay limits in favor of his own provision.
The Treasury plan offered by Geithner proposed capping executive salaries, while Dodd's amendment went much further, limiting bonuses for the highest-paid earners at Wall Street firms to one-third of their overall compensation. Most important, Geither's restrictions would have only applied to companies that received government money from that point forward, while Dodd's, as initially written, looked backward as well.
In February, administration officials and lobbyists for the financial services industry warned that Dodd's caps would lead to a "brain drain," harming efforts at employee retention and that it could encourage banks to divest themselves of government money before regaining the health. This week, no one was saying that any longer.
Dodd noted as much. "I find it ironic that the very people who were critical of me putting that bill in a month-and-a-half ago are now being critical saying we went too far," he told CNN.
All week, congressional Republicans have attempted to make Dodd--who as chair of the Senate Banking Committee has received more campaign contributions from AIG than any senator-- the scapegoat for a situation that has turned politically radioactive.
Wednesday evening, some still weren't convinced by Dodd's explanation. Sen. John Cornyn, R-Texas, chairman of the National Senatorial Campaign Committee, was dismissive of explanations offered by Dodd and other Democrats. "They need to sell that explanation. They did it. They own it," Cornyn said. "They need to fix it."
Dodd initially denied any role in altering the provision. But that changed Wednesday as he and other Democrats on the Hill were pressed to explain how the language was modified. At one point, the drama resembled an Agatha Christie locked-room mystery, as the six Democrats in Congress who participated in the final stimulus negotiations all denied knowing how the change occurred until Dodd came clean.
Those negotiations took place in February under a veritable gun, as the White House and congressional leaders frantically worked to finish the bill before President's Day. It was in those final hours that Dodd's amendment was scaled back.
That point was not lost on Republicans who complained at the time that they were shut out of negotiations by the Democratic leadership.
"Every Republican on the conference committee was left out of the negotiations and consultations entirely," Sen. Charles Grassley, R-Iowa, a member of that negotiating committee, said Wednesday. "The indisputable 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."
Comments
Well, Dodd just wrote himself out of office. It also appears that he is going to help push Obama out with him.
Nice "transparency" to the process. - Locked door meetings? Sounds like what we used to SCREAM about with GWBush. More and more, I'm starting to see that BObama is just another crooked Chicago politician.
All of this feigned outrage will be one week's worth of coverage, and the mentally challenged American public will be drooling over the Octomom next week.
Wake up Americans. They aren't even trying to Hide it anymore. They're stealing, literally stealing the money from us now!!!!!
Posted by: karl | March 18, 2009 9:00 PM
I didn't see the interview. Did the reporter bother to ask him why he lied yesterday and claimed he didn't know how the provision got in there? How does Geithner feel about getting thrown under the bus by Dodd.
Posted by: Herbie H. | March 18, 2009 9:25 PM
Geithner needs to go. Bad pick to begin with, now this.
The whole 'team of rivals' concept for the economic team trying to resolve this crisis needs to be rethought. They are in danger of destroying Obama's credibility regarding the economy.
Posted by: C.Morrisā | March 18, 2009 9:41 PM
Chrisy,
.
Didn't you mom ever tell you, when you point your finger at someone, three fingers are pointing back at you.
Posted by: Terry | March 18, 2009 10:03 PM
Fannie Mae and Freddie Mac bonuses are coming up.
Worth watching.
Norm Glitz
Hamilton Square NJ
Posted by: Norm | March 18, 2009 10:10 PM
More utter garbage reporting from the Chicago Obune. Mr. Oliphant, Dudd is NOT accused by Republicans, he DID put in the provision, called the Dodd Amendment. This stimulus bill was nearly 2,000 pages long and had to be passed immediately -- or else! The White House worked with Dudd on this amendment. These are facts, Oliphant, NOT accusations.
How can the Chicago Tribune act like a legit news operation when its reporters hide facts, alter facts and LIE??
Posted by: John D | March 18, 2009 10:23 PM
Now Dodd is blaming the treasury staff...you know, the easy targets.
Dodd refuses R-Maine Olympia Snowe's request to cut out the provision on bonuses.
Dodd is a creep from Connecticut. Who got a special mortgage loan from Country Wide and is now shopping around for a new mortgage lender...with no special deals for senators.
The state of Connecticut is insane. What's happening up there?
Posted by: conn man | March 18, 2009 10:42 PM
Listen to all of these Taliban Republican morons doing and saying anything they can to try to pull the Dems, any Dem, down to their level of filth...just so they can regain power....which isn't going to happen.
Hey Republicans ...YOU Did This... Remember?
.
http://media.photobucket.com/image/house%20on%20fire/ParyNoid/4d84149a.jpg
.
There are different theories on parenting. Especially when it comes to little children throwing tantrums. Especially when it comes to little children throwing tantrums....in the middle of a burning house.
That the Repuglicans lit on fire.
And then threw gasoline on.
And now are standing over the blaze with more buckets of (drill baby drill) gasoline.
A quiet little reminder for our esteemed Republican colleagues in the House and Senate....
REPUGLICANS, YOU LIT THIS FIRE!
And here is a hint, REAL PEOPLE are suffering....because of you.
Throwing more tax cut fuel on it wont put it out. Cutting funds for contraception won't put it out. And stamping your widdle feets and obstructing every move that the people who DIDN'T light the fire are making to put YOUR fire out...won't put it out.
There are two cliches at war here, guess which one will win out in the end:
Give a mouse a cookie, and he will just want a glass of milk.
vs.
Give them enough rope and they will hang themselves.
NO ONE, but you, has forgotten how we got to this point...in two wars, our standing in the world damaged nearly beyond repair and standing in the flaming soon to be ruins of what used to be our economy. No one has forgotten that it was you who brought us to this point. Or that you have gotten us to this point while laughing at, mocking, denigrating and calling people traitors....the same people who now have to clean up the steaming pile of elephant poop that YOU deposited in the middle of the living room...of our burning house.
The time when you could blame all of your mistakes on the Dems and have the public and the pundits buy it is over. No one is buying it. Ok, I'm wrong, the stupidest factions of the Village and the punditocracy are still buying it....because they helped you light the fire.
But know this....President Obama IS just giving you enough rope to hang yourself. And, thank you, you are gleefully jumping up on the horse and fitting the noose over your own head. You make demand after demand, and each demand is grudgingly granted, as a nice, kind liberal guiltified parent gives into a child's tantrum, over and over again.....until that parent finally realizes that that just doesn't work. And is FORCED to try something else, something less.....nice.
Soon it will be apparent to all sane people that being nice to you just doesn't work, that every time we give in to you, your unquenchable three year old egos just take that as a signal of weakness and demand more. With every petulant demand, with every hold you put on a nominee, with every little nit you pick, with every foot stomp, with every BLATANT obstructionist tactic you use to keep us from cleaning up YOUR mess and putting out YOUR fire...you reveal yourself as the petulant, vengeful, idiotic spoiled little children you are. Obama is giving you everything you want....and yet all you want is...more. Do you really think that the misplaced kindness and tolerance that is being extended to you will last, even as you continue to roll around on the floor of our burning house and try to scream at the top of your tiny lungs and hold your breath til you turn blue at the same time....as is typical of your hypocrisy and failed drama-queenish stupidity?
You failed. Your stupid Reganomics trickle-down ideology failed. Your economic theories failed, your foreign policy failed, your theocratic social policies failed and your theories of governing failed. Everyone knows this....except...apparently....you.
The definition of insanity is doing the same thing over and over again...as you have with your trickle down bullshit...and expecting different results. Everything you are screaming for is EXACTLY what got us in to this mess. The fact that you think that doing MORE of the same will fix the mess YOU made just proves your true character and intelligence. You are exposing yourself, again, as insane ideologues living in a delusional land where things that have never, ever worked....suddenly start to work, because you held your breath long enough. You are proving to the entire nation and the world that you are insane. Insane little children, throwing a tantrum in the middle of a house on fire....a fire that, I remind you once again...YOU started.
And so in conclusion I wish to say....thank you. Thank you from Democrats everywhere. We have been fighting your class warrior, hate based, petulant, childish, ineffective and incompetent policies and memes for decades now, trying to destroy your policies and assorted bullshit so that our country and world can move into the 21st century as a prosperous people who value equality freedom and justice. Now, finally, you are succeeding in destroying yourself in a such thoroughly transparent and complete way that there is only one thing that we can do....watch and laugh.
Posted by: Go Tea-bag yourselves, Wingnuts! | March 18, 2009 10:56 PM
Come on Sen. Dodd, you have received hundreds of thousands
dollars, what about your part in
this outrage?!. If your were a real
man you would resign. Do the right
thing and bring your buddy Barney Frank with you,
Posted by: Paul | March 18, 2009 11:01 PM
Oliphant writes "On Tuesday, he (Dodd) had denied a role in the change."
Oliphant should have written "On Tuesday, he (Dodd) lied."
Posted by: Perch Rapala | March 18, 2009 11:26 PM
So it's Geithner's fault, then, eh Chris? Passing the old buck? Why didn't you tell him you'd have no part of it? Like I've been saying here for two days, Dodd and the administration have their fingerprints all over this bonus loophole. Could the swamp now, PLEASE report this with multiple posts? I think we've all heard quite enough about Obama's NCAA picks.
http://www.cnn.com/2009/POLITICS/03/18/aig.bonuses.congress/index.html?eref=rss_politics&iref=polticker
Posted by: Jeff | March 19, 2009 12:51 AM
Breaking News: Dodd Says loophole that protects AIG Bonuses added per request of the Obama administration. The video is about a fifth of the way down.
http://www.butasforme.com/2009/03/17/obamas-stimulus-bill-explicitly-grants-aig-the-legal-right-to-hand-out-bonuses/
Obama should take full and direct responsibility for this mess.
Posted by: jax | March 19, 2009 1:34 AM
Circle the wagons and start shooting, we are surrounded by the "Bonus Babies"
VJ Machiavelli
http://www.vjmachiavelli.blogspot.com
NO MORE SCHUMER
NO MORE PELOSI
NO MORE RANGEL
NO MORE ENGEL AND HIS MILLION DOLLAR HOME IN MARYLAND
Posted by: VJ Machiavelli | March 19, 2009 2:12 AM
Dodd received over $100,000 in campaign contributions from AIG employees.
The AIG people probably consider it money well spent. Investing in politician Dodd (and politician Obama) was the best investment they've made in a long time, when you consider their return on investment.
Posted by: Watching Them Squirm | March 19, 2009 7:45 AM
Notice how the article avoids saying that the Obama administration is to blame? Democrats across the board did it. They wrote the language and excluded Republicans. Democrats passed it and King Obama signed it.
All of them knew the contract language was in there and all -- ALL -- have lied in the past week saying they didn't know it was there.
Posted by: Derrick | March 19, 2009 9:06 AM
Chris Dodd and Elmer Fudd just don't get the credit that they so "richly" deserve. Taxachusetts citizens refer to the CRA Loans as "Barney Frank Loans".
Most Americans are at-risk with respect to their jobs, but at election time these two financial wizards will simply be re-elected, with little or no drama. What a great country this continues to be.
Posted by: Django - N Exile somewhere in/around the 30th Parallel | March 19, 2009 9:50 AM
At some point I hope we as citizens can come together and realize it is not Repubs vs Dems. This is class warfare no matter what the pols try to tell us. The elite will keep screwing the unwashed masses as long as we let them succeed in their divide and conquer tactics. Only when we rise up against Washington united will we win. Kick all the bums out.
Posted by: quincey | March 19, 2009 11:40 AM
Way to be a stand-up guy, Chris.
Posted by: Vast Right Wing Conspirator | March 19, 2009 11:52 AM
Looks like we're heading to an "I, Claudius" solution:
Give the sword to Dodd and Geithner and let them fight; loser has to fall on the sword.
Posted by: ornery | March 19, 2009 11:53 AM
Chris Dodd promised us an explanation regarding his "sweet heart" loans from CountryWide Financial!
Chris Dodd refused to act when the Bush administration warned of potential problems with Fannie Mae and Freddie Mac!
Chris Dodd will not explain his purchase of his vacation residence in Ireland!
Chris Dodd acts to protect the bonus money flowing to the people at AIG and then initially lies about it!
We are still awaiting an explanation from Chris Dodd and he fails to provide any!
Why?
Because he is in bed with the executives at these financial companies and they come before the taxpayers residing in the United States.
Why?
Because they give him campaign contributions.
Posted by: Pat H | March 19, 2009 12:35 PM
Well, regardless of the AIG money, do you really think the stimulus plan will work. I have some doubts, and am certain in the long term will raise the debt level as well raise the likelihood of huge inflationary pressure later on. I was looking the other day, at a site,
http://www.recessioninfocenter.com
where it was showing the cyclicality in the economy. Maybe we should just let the cycle take its course. Just my 2 cents.
Posted by: Jeff | March 20, 2009 2:10 AM
This guy ran for president didn't he? Good grief.
Posted by: rjjrdq | March 20, 2009 8:48 AM