Dodd's political stock tumbles in Connecticut

[yurbud]

Source: Associated Press

Some of the worst blows came amid the furor over $165 million in bonuses American International Group Inc. paid some of its employees while receiving billions of dollars in federal bailout money. After first denying it, Dodd admitted he agreed to a request by Treasury Department officials to dilute an executive bonus restriction in the big economic stimulus bill that Congress passed last month. The change to Dodd's amendment allowed AIG to hand out the bonuses and sparked a blame game between Dodd and Treasury Secretary Timothy Geithner.

***

Republicans are also turning a spotlight on Dodd's longtime friendship with Edward Downe Jr., a former director of the Bear Stearns investment firm who was snared in an insider trading scandal. Dodd owned a condo with Downe in a fashionable Washington neighborhood but bought out Downe's share in 1990 after learning Downe was under investigation. Downe eventually pleaded guilty to trading inside information.

During the final days of the Clinton administration, Dodd wrote a letter supporting a pardon for Downe. "Mr. President, Ed Downe is a good person, who is truly sorry for the hurt he caused others," Dodd wrote. The pardon was granted.

Read more: http://news.yahoo.com/s/ap/20090320/ap_on_go_co/dodd_on_thin_ice

---

After the epic failure of the GOP, no Democrat should be in danger, but this story shows that the DLC program of trying to be corporate America's OTHER water boy could blow up in the Democrats faces.

If Dodd had acted consistently as a progressive, there would be no grounds for the GOP to come after him. Instead, he listened to Geithner and carried water for some frat boy filth who wanted a pardon.

Dodd may not be a DLCer, but acting consistently with their values has made him a target of the GOP when he should be unassailable.

It is time to take out the corporatist trash.

[IthinkThereforeIAM]

1. Dodd isn't DLC?

... I was under the impression/information that he was. Which would explain perhaps why he was left holding "the bag" and on his way out. :shrug:

[No Elephants]

8. How would his being a DLCer explain why DLCers left him holding the bag?

[espiral]

2. What else is new in Patheticut? n/t

[tkmorris]

3. Patheticut huh?

Sportin' that "Che" avatar too. That's interesting.

[Lost in CT]

21. If Che hadn't gotten killed he probably would have moved to Greenwich

opened a coffee shop or something.

[espiral]

35. Actually, he preferred yerba mate...

...and would have avoided the tri-state area like any self-respecting asthmatic.

Seriously, where is the logic in picking on the memory of Che because of some random DU member who dares not to think highly of Connecticut?

[roguevalley]

38. his dad was a prosecutor in Nuremburg and had a whacking when he repped

connecticut. like father, like son.

[Jennicut]

16. Thanks a lot. I live there and we are not all investment bankers and most of us aren't wealthy.

That is the part of the state near New York City. The rest of the state, especially northwestern CT where I live relates more to Mass and New England.

[Alexander]

25. It's far nicer than the hellhole you must be from.

Che, huh? Why not just admit you're a clueless trendy college kid already?

[espiral]

36. oy vey...

As I mentioned above, what on earth does my affinity for Che have to do with my opinion about the state of Connecticut? The logic is boggling. Were my avatar a sunflower instead, would I get lambasted for being a typical gardener who fails to adore Connecticut enough?

[acmavm]

4. Where is all the outrage about this? Dodd was/is a blatant liar. Look at

what we did, what we said about repubics when they get caught pulling this shit.

But its a dem so it can't be all bad, right?

[shadowknows69]

6. I won't defend him and he was originally a favorite candidate of mine

I'm extremely disappointed, but then I should be used to that from some of our Democratic leaders by now.

[Dr.Phool]

5. Dems: Figuring out new ways to snatch defeat from the jaws of victory.

They need to primary him. But, his coffers are so loaded with corporate cash, he'll be hard to take out. But, he'll probably switch to the Connecticut for Dodd Party.

There shouldn't be a vulnerable Dem anywhere, but these guys make it easy.

[yurbud]

24. that about sums it up--the more they imitate Republicans, the more they shoot themselves in the foot

[Kalyan]

7. Dodd deserves this ...

He claims that he listened to Fed sources. Why?

He should have listened to his own voice. That's the reason the voters elected him. I won't be sorry to see him go. He should serve as a lesson to all Democrats. Just because you have control of the POTUS, Senate & Congress - doesn't mean you have a blank cheque. It means additional responsibility.

Dems need to ensure that they maintain a much higher moral standard than their opponents else go join them.

[marshall]

10. There's an implicit threat in that comment about listening to an admin source

He's like Blagojevich in that regard--flailing out for a lifeline by sending a message to former "allies" that he can and will name names if he is motivated to do so.

[karynnj]

11. Welcome to DU (I've seen your excellent posts on a few threads, but just noticed the post count)

I agree with you completely that Democrats need to maintain a higher moral and ethical standard than the Republicans did.

I think the Countrywide mortgage is worse than this change in his amendment. The length of time he took before disclosing the details made things worse as, to at least me, it made it seem that there was something he thought better to hide than disclose. That implies he knew something was not completely kosher.

On the AIG bonuses, his problem is similar - that he did not give the whole complete truth immediately. Saying that he was not on the conference committee and that the amendment that passed the Senate did not have the exclusion were both true statements, but in answer to the question they intended to deceive. The fact is he would have been far better off just telling the entire truth to begin with. Saying he wrote the amendment to prevent these types of abuses, but altered it at the request of Treasury to make it going forward rather than retroactive because of opinions that retroactive could be illegal would have been a much smaller story.

I do agree that many of these are old stories, but there is sometimes value in looking at actions over time. It is the only way to see patterns. What Dodd needs to show is that they were atypical by pointing to other things he did. I hope he can do this. (In 2007, I really wanted to be impressed by Dodd after Kerry opted out - but seeing many interviews on talk shows, I wasn't. As I had ruled out Edwards and HRC and did not like how Biden was running the SFRC, I was looking for anyone in case something led to Obama's elimination. Fortunately, that was not needed.)

[Kalyan]

12. thanks

thanks for your note.

You summed it best. Had Sen. Dodd comeout upfront that he was pressurized by the Fed, he would have caught less grief. But the damage is done. The country thinks of him as a villain who is hand-in-glove with Wall Street execs. Somehow, Ben Bernanke has earned an undeserved but lucky repreive. Or has he?

[Craftsman]

9. Being seen as bought and paid for by banks might not be that great thes days

He has taken more money from AIG then any other Senator, he should IMHO excused himself from any part of dealing with them. Hopefully he will be primaried out.

[dixiegrrrrl]

19. Sounds as if he is from the Republican Wing of the Democratic Party...

I swear there is a herd of them mixed in there.

[Lost in CT]

22. He comes from the Progre$$ive wing of the CT DEM party. nt

[PassingFair]

13. He was a stand-out on FISA...

most everything else about him seemed suspect.

I was surprised to find he was DLC because
of his outspokenness on FISA.

[REACTIVATED IN CT]

27. Habeus Corpus, too

When I met him in the fall, I thanked him for defending our Constitution.

The press is already turning against him. He is vulnerable and that is unfortunate.

[w4rma]

14. Now, fucking Giethner may cost Dodd our Senate seat. GET RID OF GEITHNER! (nt)

[No Elephants]

15. Y'all may want to take a look at

this thread. http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3790783

[REACTIVATED IN CT]

26. Do you think the repukes who are targetting him care

about the facts ? They will be filling the heads of unaffiliated voters (which we have a lot of in CT) with Countrywide Mortgage and now this.

[Jennicut]

17. I think he needs to retire. I am ready for a set of two new Senators.

We have some great reps who got elected only in the last 4 years.

[No Elephants]

18. Did you look at the thread that says Bushco specifically approved these bonuses? When

Bush was still POTUS?

If that is so, lawsuits against the US could very well have resulted from breaching those contracts. Is that what the Obama administration and the D of J would need, as they try to put out 40 fires at once.

Despite contributions from AIG, Dodd put the limit in there in the first place. So, he did not act as though he had been "bought and paid for. He took his own language out only after the current administration expressed its concern about lawsuits.

If that info on the other thread is correct, either Dodd was right. At a minimum, he was not so clearly wrong as to require him to step down.

[Jennicut]

20. I am worried about him winning reelection frankly

Dodd has done other things that are questionable. I agree this AIG thing is not his fault. I am just hoping that he can still beat a Rethug in reelection as the perception that he is damanged has been done. His ratings here in CT are already low.

[No Elephants]

33. Ah, now I get your concern. Good point. Sometimes even the perception of guilt

is worse for elections than anything else.

Let's hope he sees the appeal of retirement now that the Presidency is clearly not in his future and an appealing, up and coming Connecticut Democrat gets his seat.

[CTyankee]

37. I think Rob Simmons would beat him if the election were held today.

I didn't think Simmons was that bad for a republican. I still don't want to lose a Dem senator, but I think Dodd has been in Washington too long. I'm sorry about it because I think Dodd has done some really good things.

My hope is that Dick Blumenthal will jump in and run. I love him and think he would be an outstanding Senator. AFter the Lieberman fiasco, it would be horrible for CT dems to lose an important dem seat...

[Lost in CT]

23. Well there are a couple of democrats in danger...

The governors of NY and NJ and that tool over in Ill come to mind...

But Dodd is a special case. He is representing Democrats in his District. That is what he is doing... and just because the rest of the country is mad At these hedge fund owners and insurance execs... doesn't mean it isn't Dodd's job to represent his people.

[scipan]

28. It was Dodd's amendment that limited compensation in the first place

Weakening it was obviously something he did not want to do, or he would have written it differently in the first place.

You all are falling for Republican spin. They want his seat.

[struggle4progress]

29. CQ Transcript: Sen. Dodd Holds a Media Availability On AIG and Related Issues

CQ TODAY ONLINE NEWS
March 20, 2009 – 1:00 p.m.
CQ Transcriptswire
SPEAKER: SEN. CHRISTOPHER J. DODD, D-CONN.

... I led the battle to put some strong language in the stimulus bill dealing with bonuses, golden parachutes, excessive executive compensation back some six or seven weeks ago with strong language adopted unanimously by the United States Senate. I thought it was needed, because, frankly, there had been examples too often of people taking advantage of a situation with taxpayer dollars to enrich themselves at a time when others were paying an awful price as a result of this economic crisis.

I was asked by the Treasury Department to modify some of that language six weeks ago, which seemed rather technical and innocuous at the time. Had anyone suggested to me six weeks ago that this was on behalf of some bonuses for AIG employees who had received substantial taxpayer money to try and keep that organization alive I would have rejected it out of hand.

I’m disappointed, frankly, that those who requested this kind of a change didn’t have the courage to stand up a couple of days ago and admit that they were the ones who asked for it, but they did. It seemed technical at the time. Obviously, it’s turned out to be something more than that, as we’ve learned.

I’m determined to do what everyone else can here, to see that we reach back and reach these dollars. In fact, in fact, part of that amendment still allows the secretary of the treasury to -- where he finds public interest stakes involved -- to be able to use that as a justification for going back. In fact, I’m told they’re doing that right now ... http://www.cqpolitics.com/wmspage.cfm?parm1=5&docID=news-000003080922

[struggle4progress]

30. Dodd defends himself on bonuses

Posted by Foon Rhee, deputy national political editor March 20, 2009 11:50 AM

... Dodd said during the drafting of the final version of the $787 billion stimulus bill, he led the charge on including "strong language" to limit executive compensation. "I felt it was needed," he said, because too many time people try to take advantage of such situations.

He reiterated that he was asked by Treasury Department officials to change the language to protect some already-contracted bonuses to avoid legal issues.

"It seemed rather technical and innocuous at the time," said Dodd, chairman of the Senate Banking Committee.

He said if he had known it would allow the $165 million in AIG bonuses, "I would have rejected it out of hand" ...

http://www.boston.com/news/politics/politicalintelligence/2009/03/dodd_defends_hi.html

[movonne]

31. I don't have much confidence in Conn. after they put lieberman in...

[No Elephants]

32. Bush, Paulson and Bernanke specifically approved these bonuses. So far, Obama and Dodd

have taken responsiblity for them. Guess who hasn't, though? The people who actually were responsible for them.

Once more, with feeling, the people actually responsible would be Bush, Paulson and Bernanke.

The ones who have NOT publicly acknowledged responsiblity.

[xchrom]

34. he shot himself in the foot. nt