AIG Taxpayer Bonus Bonanza – Dodd Reluctantly Takes Responsibility for Administration Gaffe

Chris Dodd (D-CT), Senate Banking Committee Chairman, spoke with CNN yesterday and took responsibility for the addition of a bonus “loophole” placed into the infamous “stimulus” bill. To compound his public relations problems, Dodd received $281,038 in donations from the insurance giant, topping a list of high profile politician’s from both parties. However, it is inconceivable that Dodd was the only member of the Administration or the Legislature that knew this loophole was in place – therefore, it comes as no shock that the Treasury was involved.

Dodd apparently moved to keep the loophole, after the Treasury brought to light that issues of legality (contracts) might arise should the stimulus contain strict language on bonus restrictions (AP Report)
Once Dodd made his statement of culpability to CNN, the administration weighed in – noting it alerted Dodd to the potential of legal ramifications, but did nothing to request that provision be removed from the final stimulus. Therefore, for Barney Frank and Company to blame AIG for handing out bonuses allowed under the President’s hastily passed stimulus, is disingenuous to say the least.

There is plenty of blame to go around - -starting with the Treasury and Dodd acting as the “reluctant” accomplice. Mr. Geitner, in his role as President of the New York Federal Reserve Bank, and current Obama Treasury Secretary, was involved in meetings to “save” Wall Street, back in September, 2008. It is impossible to believe that an individual with two high profile of positions involving this particular institution, would be oblivious to the facts. The New York Times is showing concern for Geitner as “some” are calling for his resignation.

The bigger question, one should ponder, is what else is lurking in the every single piece of banking, stimulus or budget legislation that has been hastily passed and barely read by those elected to safeguard our nation? Dodd’s troubles, and the administration, are most likely the tip of the iceberg.