RSS Feed for This PostCurrent Article

[Updated VIDEO] Chris Dodd, After Lying, Admits He “Fixed” the AIG Bonuses

By SusanUnPC on March 19, 2009 at 3:46 PM in AIG, Christopher Dodd

UPDATE: I found the correct video, and replaced the wrong one. “Dodd admits to role in AIG loophole,” CNN says this is the video of Dodd’s confession, but it’s not. However, DODD remains mired in his envenomed, equivocating, and execrable excuse after excuse, as you’ll see in this utterly pathetic act of his. Dodd needs to be frog-marched OUT of the U.S Senate.

(FROM LARRY JOHNSON–This is big trouble for Dodd and Timmy Geithner. Geithner lied as well about his role in this fiasco. You cannot have a liar at the top of Treasury and hope to be taken seriously.)


Larry Johnson called me and told me he’d seen this video of Sen. Christopher Dodd (D-Conn.) admitting that he secretly fixed the bill, taking out amendment language (written by Senators Ron Wyden (D-Ore.) and Olympia Snowe (R-Maine)) that would have prevented bonuses in excess of $100,000. From CNN’s story:

– After denying having anything to do with crafting language in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses, Sen. Christopher Dodd admitted that he and the Treasury Department were responsible for the loophole. … Read all.

Yesterday, the Liar-Pants-On-Fire hemmed and hawed like this:

This is the Chris Dodd of yesterday, which I had titled in the drafts as:

Chris Dodd Is Innocent As a Newborn Babe


Visit msnbc.com for Breaking News, World News, and News about the Economy

  • politicalidentitycrisis

    Is he falling on the sword for That One??? I still have no idea what makes That One worth it. Not that I care about Dodd, but I don’t want to see this pinned solely on him.

    Let’s impeach them all just to make sure we get the right culprit. It’s the only way to know for sure!

  • lidia

    Why I REALLY love capitalism (esp. USA’s one)

    First, you do some seedy deals with others’ money and got pay millions for it, and use the loot to buy yourself some USA polticians (BOTH parties, as usual)

    Then you got bust, because all those schemes (aka “creative” capitalist methods) are not more than bubbles.

    Then you ask for USA’s taxpayers’ money (really a lot of money being not from USA but looted from all over the world, but lets do not stop here for now)

    Then the brave USA polititians got VERY severe and are going to let you have ONLY 100 000 $ in bonus (for ruinig you firm, if I got it right)

    Then the authors of the site are OK with such peanuts.

    And to think that in the same site USA workers were called names for getting 50 000 A YEAR for a hard work (and NOT for ruining USA and world’s economy)

    Now I am sure it is clear why i REALLY love the USA capitalism.

    • Ferd Berfle

      Then the authors of the site are OK with such peanuts.

      You’re not even close. That One and his henchmen were part and parcel of this. Where’s your outrage at the flimflam Prexy, huh? They didn’t ask for and did not receive the means to stop those payments.

      That finger you’re pointing should properly be in another direction.

      • Katmoon7

        Concur!

        • Ferd Berfle

          Afternoon, Katmoon!

          • Katmoon7

            Howdy, Ferd! L & I are waiting for Crim Law.

            • Ferd Berfle

              I hope you have a great class!

              • PainKillerJayne

                Orange Cheeto covered fingers have been known to point in the wrong direction.

                • Ferd Berfle

                  It also screws up their beanies and chin straps, too.

                  • PainKillerJayne

                    lol Ferd! and good afternoon to ya!

                    • Ferd Berfle

                      Afternoon, PK

                • jjsmoof

                  I thought orange cheeto covered fingers were kept in dark, anatomical places when not in the cheeto bag. hahaha

  • politicalidentitycrisis

    Hannity just said that Geithner announced his department added the provision (isn’t Geithner alone in his department?).

    What is truth anymore????

    • Ferd Berfle

      The Administration can’t add requirements to a law without running it back through Congress. They got what they asked for, which was a lot of money with no strings attached for anyone.

    • elise

      The Bible says the TRUTH will set us free. Joseph Goebbels said TRUTH is the enemy of the state. If we assume both statements are true, we can never be free unless we are enemies of the government.

  • Ferd Berfle

    Marvelous. Who needs neocons to ruin the country when we can have a Democrat do it just as easily? The next election cycle needs to be one where the public puts our government on notice. I will vote for no incumbent, irrespective of party. They’re all on the take and need to be removed from office.

    • candymarl

      Ferd I’m laughing at your comment but it still hurts. You are so right.

    • termo

      This is the culture of inside the D.C. beltway.

      You are right that it is not a matter of party affiliation but the people themselves.

      This is a perfect storm for Republicans because you have an irresponsible party leader in Nancy Pelosi who has never transcended from being highly partisan to being a bi-partisan stateman. she is also far more liberal than most Americans.

      Then there is Obama who we now see is completely over his head in this job. You CANNOT elect anyone who has no experience at anything except mentoring as a socialist.

      Had Hillary been elected we would already be seeing an improving economy with more responsible economic policies similar to what we saw with Bill Clinton.

      • Ferd Berfle

        Had Hillary been elected we would already be seeing an improving economy with more responsible economic policies similar to what we saw with Bill Clinton.

        I know that one all too well as I am a staunch HRC supporter (and Bill before her). For want of a politician with some integrity….

    • http://www.rabblerouserruminations.blogspot.com/ Rabble Rouser Reverend Amy

      And not just as easily, but so QUICKLY!! It has been TWO MONTHS – that’s it – since Obama has been in office. Sure seems like longer…

  • catfish

    The administration made him take it out. Even theNYT is going with that version. Larry Summers and Tim Geithner made Dodd REMOVE the provisions that Dodd had added inthe first place, which would have limited bonuses.

    It was Dodd’s idea to limit bonuses. Dodd added the provision. The administration had it taken out.

    • PainKillerJayne

      What is the under/over on Geithner being tossed under the bus?

      • Animal Control

        It’s even money!
        Maybe he’ll be the first to be tosed over only to be run under later. He’ll be the over and under. I saw an interview where is the brilliance. This whole Obama thing has been a Madison Avenue sales job.

    • elise

      I think Snowe and Wyden were responsible for the original wording restricting bonuses, not Dodd. Then Geithner and the WH asked it be “modified”.

  • http://www.latinarepublican.com DD

    Dodd is a sleaze bag! Freakin’ LIAR!!!!!!!

    • beebop

      It’s a good things that lizards don’t sweat … he’d be drenched.

      Dodd is an embarrassment to his state.

  • catfish

    Eliot Spitzer may have no credibility in the marriage department, but he still knows Wall Street and fraud better than most.

    Infuriating WNYC interview with Spitzer about AIG from yesterday:

    Brian Lehrer: What put AIG in your sights as New York attorney general?

    Eliot Spitzer: We were approached by some sources who said that AIG, which was at the time guided by Hank Greenberg as CEO, was, to speak in street vernacular, juicing its books by creating false reinsurance contracts that would appear to add capital to its balance sheet. Now that sounds all very complicated but, what it really means is they were playing games with their accounting in order to look stronger than they were. Hank Greenberg, there are tapes that prove this, was very, very concerned with any, even minor, fluctuation in their stock evaluation.

    These contracts, it was alleged, were designed to make them look better in the eyes of Wall Street. We investigated, brought a civil case to settlement of $1.4 billion. At the time, $1.4 billion seemed like a lot of money. It was the biggest financial settlement ever. The board removed Hank Greenberg because he invoked the Fifth Amendment, when he was asked about this. Four people were charged criminally and convicted for basically playing games. But it lead us to inquire and to probe into the inner workings of the company and what we saw was a mess.

    • Boxer Mum 06

      Catfish, this is awesome, thanks for sharing!

      Lehrer: When you were looking at AIG’s books, as NY State attorney general, did you see the credit default swaps and the outsized risk that they represented?

      Spitzer: We were not looking at that part of the company. We were looking at their reinsurance contracts with Gen Re, but what we saw was a company, when you peeled back the first layer of the onion, that was without anything close to adequate controls and adequate structure to know what was going. The way they put their financials together was something that was absolutely beyond what was acceptable, which was why they paid a fine of $1.4 billion.

      WHY!!!! Did they do this bailout when they already knew there were issues with their books?

      Timmy needs to go NOW!!!!!!!!!!!!

    • Julia

      Eliot Spitzer brought prostitutes. He knows what is a fraud, really!

  • http://www.latinarepublican.com DD

    This is why we shouldn’t fucking rush into signing these bills without reading them in the first place. Pelosi sure is being quiet.

  • Tymann

    THOSE DUMMOCRAT CLOWNS HEADED BY ‘THE ONE’ ARE THE BIGGEST CIRCUS ACT AND THE WORST BUNCH THAT HAVE EVER BEEN IN WASHINGTON DC AND THEY ALL NEED TO GO STRAIGHT TO JAIL AND DO NOT COLLECT $200.00!

  • catfish

    WSJ, Feb 14 2009

    The most stringent pay restriction bars any company receiving funds from paying top earners bonuses equal to more than one-third of their total annual compensation. That could severely crimp pay packages at big banks, where top officials commonly get relatively modest salaries but often huge bonuses.

    As word spread Friday about the new and retroactive limit — inserted by Democratic Sen. Christopher Dodd of Connecticut — so did consternation on Wall Street and in the Obama administration, which opposed it.

    • NoBamaNoWay

      hmmm, interesting.

  • Tymann

    “Dodd is a sleaze bag! Freakin’ LIAR!!!!!!!”

    Just remember that “birds of a feather flock together” and “The One” is the biggest liar of them all. They all think that they’re Slick Willies and can get away with anything they say. Sorry it’s not going to happen. It’s time to clean house in Washington.

    • b mathews

      heard on an episode of West Wing ‘a president doesnt make new friends . thats why they keep the old ones.” nuff said?

  • Steve1

    We love to blame the illegal immmigrant, we want the auto workers to break their contracts and take paycuts…we look to look down our noses at those corrupt 3rd world countries. Hell, we really need to take a good look at ourselves! What has gone wrong. Both political parties are to blame for this meltdown. Greed, power, corporate controlled MSM. We really need to be self-reflective, we need to make a clean sweep of both corrupted political parties and the crooks on Wall Street. Who is looking out for the hard working Americans???

    We need a new party, which has not be tainted by power and money! A party of responsible, loyal Americans. Someone who is looking out for America and our hard-working, patriotic citizens!

  • Steve1

    We love to blame the illegal immmigrant, we want the auto workers to break their contracts and take paycuts…we look to look down our noses at those corrupt 3rd world countries. Hell, we really need to take a good look at ourselves! What has gone wrong? Both political parties are to blame for this meltdown. Greed, power, corporate controlled MSM. We really need to be self-reflective, we need to make a clean sweep of both corrupted political parties and the crooks on Wall Street. Who is looking out for the hard working Americans???

    We need a new party, which has not be tainted by power and money! A party of responsible, loyal Americans. Someone who is looking out for America and our hard-working, patriotic citizens!

    • Ferd Berfle

      we look to look down our noses at those corrupt 3rd world countries.

      I imagine we look rather foolish after two electing two dunderheads in a row.

      We need a new party, which has not be tainted by power and money! A party of responsible, loyal Americans. Someone who is looking out for America and our hard-working, patriotic citizens!

      I’m with you, Steve. This needs to happen now.

    • NoBamaNoWay

      word, but it seems almost impossible to prevent this kind of corruption, because the laws of evolution dictate that the strong get stronger. monetary power will always join with governmental power to get even stronger, at the expense of the average people, of course.

  • termo

    Between this obvious pathetic lie concerning the bonus clause and his association with Countrywide and the mortgage mess we have, I think Dodd should consider resigning.

  • Chris Martin

    This is all a sideshow, really. The bonuses are to the tune of hundreds of millions, the squandered money in the bailout is a trillion. That’s 10,000 times more theft than the bonuses. The Dems–Obama, Dodd–and the media are inflating the horrendousness of the bonuses so they can get away with the really big plundering.

    • Boxer Mum 06

      The bonuses are nothing more than a distraction of the real problems here. Typical Obama dodge, blame the other guy so you go unnoticed.

      Does anyone else think it was disgusting how they treated Liddy? This man came out of retirement, is being paid $1.00 to clean up this mess and the congress threw so many daggers at him casting the blame his way.

      Barney Frank is so laughable, I still can not for the life of me know who would vote for this joke. Is there no one better out there to take these jobs?

      I seriously think someone could randomly go through a phone book and pick people out, place them in Congress and they would be more competent.

      Lesson learned from this mess:
      T E R M L I M I T S !!!!!!!!

  • HARP

    This is all to cover the fact that they cannot borrow any more money so now they are starting to print it. Can you say INFLATION.

    • ziggy

      I can certainly say it, but I’m not exactly sure when we’ll see it. Several trillion dollars apparently vanished from the global economy recently with a puff of smoke. The buying power of my dollars didn’t suddenly skyrocket.

      If financial concerns stopped hoarding the cash they’ve already been given, the newly printed trillion might never go into circulation.

      • Ferd Berfle

        Several trillion dollars apparently vanished from the global economy recently with a puff of smoke.

        Ask your Messiah where it is, goofy. He and Bush and Cheney have apparently squirreled it away. Too bad, bot. But your dreams of avarice will have to wait for another chosen one. Next time, try to pay attention and not fall for the man with the golden tongue and lead brain.

        LMAO at gullible children.

  • SoCalDem

    We know the reason they keep getting re-elected, who else can afford to run for office? You have to have the backing of someone with deep pockets to even get on the ballot. We need to remove the money input by corporations and special interests. The media should have to give equal time to people tossing their hat in the ring. The way it is now we aren’t really given a choice. The DNC and the RNC pick who will be allowed to run. If they don’t support you, they won’t help you. How do we fix that??

    • NoBamaNoWay

      correct; it’s virtually impossible to get elected *without* being on the take from somebody.

    • elise

      Public financing was supposed to address that problem, SoCa. Of course they made it optional instead of mandatory. If the laws could be changed state by state, it’s possible, but politicians would fight it all the way. The Constitution can be amended, but a bill like that wouldn’t make it out of committee. Or massive demonstrations by voters could force a change. It’s worked before.

  • Sassy

    Some of the republicans were on the House floor earlier working on “The Mystery Of The Missing Hand”.
    I gotta say I didn’t know some of them can be really funny!
    They are going to eliminate the suspects one by one!
    I have always been a fan of the “who done its”, but they are usually these sassy gals and kick-a$$ Larry Johnson types.
    I can’t wait to hear the ending, and see how many Maseratis and yachts we paid for with these bonuses!

  • CG

    SunsanUnPC, great post. There is so/too much to be furious about I realize. But can I take the time to scream about Chris Matthews… According to http://www.opensecrets.org/orgs/recips.php?id=D000000123 the AIG contributions are as follows

    Name Office Total Contributions
    Obama, Barack (D-IL) Senate $104,332
    Dodd, Chris (D-CT) Senate $103,900
    McCain, John (R-AZ) Senate $59,499
    Clinton, Hillary (D-NY) Senate $37,965
    Baucus, Max (D-MT) Senate $24,750
    Romney, Mitt (R) Pres $20,850
    Biden, Joseph R Jr (D-DE) Senate $19,975
    Larson, John B (D-CT) House $19,750
    Sununu, John E (R-NH) Senate $18,500

    Why does Chris Matthews continue insult us with Hillary hate by rounding DOWN AIG contributions to Obama and Dodd and round UP contributions to Hillary? According to the video above Matthews attributes the contributions as follows

    Name Office Total Contributions
    Obama, Barack (D-IL) Senate “over $100,000″ screen says $104K
    Dodd, Chris (D-CT) Senate “over $100,000″ screen $104
    McCain, John (R-AZ) Senate “$59,000″ screen $59K
    Clinton, Hillary (D-NY) Senate “around $40,000″ screen $38k

    So by listening to Chris Matthews’ fudging numbers (some fuzzy math), rounding DOWN amounts to a difference of Obama – $4,332; Dodd – $3,900; and McCain – $499 but Hillary gets the special treatment of rounding UP by $2,035. What an ASS!

  • Tess

    So lemme try to get this straight: it looks as if Timmy-the-tax-cheat and No-I-didn’t-yes-I-did Dodd are going under the bus, that Fannie Mac Frank (think of $$-changers in the Temple)is sitting in judgment, and POTUS is gonna go on a comedy show. Have I got this right so far?
    It’s a @#$%^ Banana Republic!
    AND think how ticked Stewart is that he didn’t land POTUS.

  • Sassy

    Are Dodd and Geithner smart enough to see that the sharks are circling?
    Probably not, but in their shoes, I would be trying to spot some driftwood!

    • Animal Control

      No, they are not smart enough, but they are arrogant enough.

  • Anti-Harkonnen Freedom Fighter

    TeamPOLITICO: Mar. 19, 2009 – 6:56 PM EST

    Geithner said he did all he could legally to stop the bonuses – but also hinted strongly that he actually knew something about the bonuses earlier than previously disclosed.

    Geithner said that he learn the “full scale and scope” of the AIG issue on March 10, as the White House disclosed this week. But when pressed as to whether that was the first time he became aware AIG officials would get bonuses, he repeated that it was the first time he learned of the full scope of the payments.

    “And as soon as I heard about the full scale of these things, we moved very actively to explore every possible avenue — legal avenue to address this problem, to make sure that, again, the assistance we were providing was not going to unduly benefit these people,” Geithner said, according to a transcript provided by CNN.

    So this scandal now turns on what the definition of “full” is…………sad. Of course Geitner knew, this whole outrage week by the Adminstration starting on Saturday afternoon with choice leaks to the NYT is a Axelrod counterspin construction. EVERYONE in the business and media world knew of the AIG Exec bonuses from the 10Q’s in Nov 08 and the CNN/Bloomberg coverage of AIG bonuses to the Financial Products Division in Jan 09:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=auhzcUg60VZA&refer=home

    AIG Said to Offer $1 Billion in Retention to Workers (Update1)

    By Hugh Son

    Jan. 28 (Bloomberg) — American International Group Inc., the insurer saved from collapse last year by government money, may have committed more than $1 billion to employees to keep them from leaving the company.

    About 400 workers at New York-based AIG’s financial products unit may get $450 million in two installments, said two people familiar with the situation who declined to be identified because the plan is confidential. That is in addition to about $619 million in retention pay going to 4,200 executives and employees at subsidiaries including life insurance.

    AIG is trying to hold onto employees while it sells businesses to repay a government loan. The insurer took a federal bailout in September after the financial-products unit, which sold credit-default swaps that plunged in value amid the housing market collapse, caused about $34 billion in writedowns. AIG said the program was disclosed before the government rescue, which is now valued at $150 billion.

    “I was extremely disappointed — but not surprised — to learn that AIG will be awarding bonuses to the very division that drove the company into the ground,” said Representative Elijah Cummings, a member of the House Committee on Oversight and Government Reform, in an e-mail. AIG shouldn’t be awarding “millions of unmerited dollars to employees while at the same time begging the U.S. government for financial life support.”

    The fact that “Ali” at CNN didnt press Geitner with quotes from HIS OWN NETWORK and Bloomberg from Jan 09 is a disgrace.

    And as a final bonus, from the AP re Obama’s “outrage” when he learned “last week” about the AIG bonuses…what, the President and Leader of the Free World doesnt watch CNN or read Bloomberg, nor does any of the hundreds of economic analysts and advisors who work for him? This is pure Axelrod counterspin lies.

    BURBANK, Calif. – President Barack Obama has told Jay Leno he was stunned when he learned of the bonuses that bailed-out insurance giant AIG was paying its employees.

    Obama told “The Tonight Show” host the payments raise moral end ethical problems — and the administration’s going to do everything it can to get them back.

    But Obama added the bigger problem is the culture that allowed traders to claim them. He says that’s got to change if the economy is to recover.

    According to NBC, Obama was the first sitting president ever to appear on “The Tonight Show.” He’d already appeared twice as a candidate. already appeared twice as a candidate.

    In his opening monologue, Leno lots of people were surprised Obama would come on NBC — figuring he’d be tired of big companies on the brink of disaster with a bunch of overpaid executives.

    Leno also joked about the dismal state of the economy, saying it’s so bad Obama flew to California on Southwest Airways — making nine stops.

  • apishapa

    Actually Dodd is the Senator who put bonus pay and executive pay restrictions in the bill in the first place and he argued to keep them there. According to Glen Greenwald, Republicans raised holy hell about interfering in the running of a business. Republicans demanded those pay restrictions be lifted. WSJ wrote opinion pieces about how Dodd was trying to insert government into business and he was bringing down the entire country by demanding caps on compensation. Dodd caved when OBAMA threatened to veto the bill if those caps were left in.

    Dodd should have held his ground, but any Republican who now is bitching about those caps being removed needs to look at his own words and actions from just a few weeks ago. Short memories. Three weeks ago they were accusing Dodd of trying to destroy capitalism by capping executive pay. Sure Dodd ought to hold tough against this President, like the Republicans did against Bush for the last eight years. Oh, yeah…

    Dodd has a lot of dirt on his hands, esepcially when it comes to banks, but he did try to do what was right this time, and Obama should be ashamed for accusing him of being responsible for those bonuses. Obama and Geithner demanded exemptions from executive pay caps. They are responsible for this entire mess.

  • God & Gun Clinging American

    Perhaps IF any of the members of Congress had READ the Stimulus Bill before the voted for it they would have caught this “oversight”!!!!!!!!!!!!!!