Michelle Malkin » Chris Dodd: For AIG bonuses before he was against them

Chris Dodd: For AIG bonuses before he was against them

By Michelle Malkin • March 17, 2009 11:22 AM

Kabuki Theater of Outrage, Act III. Unscrupulous borrower Sen. Chris Dodd struts on stage. Fox Business reporter Rich Edson turns on the spotlight:

Senator Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group (AIG: 0.9768, 0.1967, 25.21%) bonus recipients so the government could recoup the $450 million the company is paying to employees in its financial products unit. Within hours, the idea spread to both houses of Congress, with lawmakers proposing an AIG bonus tax.

While the Senate constructed the $787 billion stimulus last month, Dodd unexpectedly added an executive-compensation restriction to the bill. That amendment provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009,” which exempts the very AIG bonuses Dodd and others are seeking to tax. The amendment is in the final version and is law.

Also, Sen. Dodd was AIG’s largest single recipient of campaign donations during the 2008 election cycle with $103,100, according to opensecrets.org.

Need to make my airsickness bag triple-strength this morning.

Update: David Freddoso has more…

Here is the loophole, from the section of the stimulus package that deals with compensation rules for TARP recipients:

The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary.

Frankly, it’s hard to imagine how the government could prevent such contracts from being honored. But the presence of this loophole, in black and white, certainly gives the lie to all of this phony outrage — by the senator who created the loophole, by the president who signed it into law, and by everyone else who voted for the stimulus package.

Posted in: AIG, Chris Dodd

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#651627

On March 17th, 2009 at 5:32 pm, happyscrapper said:

On March 17th, 2009 at 3:41 pm, sims said:
CO2: Not only did they know about them but, under the terms of the bill, these bonuses are exempt from the new rules. They are trying to make the American people believe they can do something but they can’t. Dodd is using scare tactics to try to get the AIG execs to not take money they are owed under contract because he knows that he and Congress are impotent to do anything.
Off topic, it’s 71 degrees today here in Wisconsin so, just in case there is any truth to CO2 raising the temp., everyone try to expand your carbon footprint as much as possible. Me likee it warmer.

Judge Napolitano just said there is no way they can stop these bonuses. They are under contract and it is UNCONSTITUTIONAL to override a valid contract, which with the backbone of our entire capitalist system. Overriding contracts is a SOCIALIST act!
#651636

On March 17th, 2009 at 5:41 pm, emjem24 said:

Dodd is just another corruptocrat who wants it both ways. Another weasel that’s tolerated by a corruptocrat state like Connecticut. The only reason this guy is still in office is the goodies that he gives his bootlickers, the Connecticut voters.
#651639

On March 17th, 2009 at 5:43 pm, flenser said:

I’m shocked! It’s almost like the Democrats are feeding the American people a line when they claim to be outraged by what AIG is doing.
#651641

On March 17th, 2009 at 5:44 pm, flenser said:

They are under contract and it is UNCONSTITUTIONAL to override a valid contract

Bankrupt companies have no valid contracts. That’s why we were able to suggest that GM void it’s contracts, remember?
#651650

On March 17th, 2009 at 5:48 pm, flenser said:

What is wrong with Dodd and the rest of them? Was no one aware of the AIG bonus exemption? It wasn’t that long ago so how could they have forgotten?

They figure their pals in the media will cover for them. And I suspect they are right about that. This information won’t go mainstream.
#651678

On March 17th, 2009 at 6:07 pm, happyscrapper said:

On March 17th, 2009 at 5:44 pm, flenser said:
Bankrupt companies have no valid contracts. That’s why we were able to suggest that GM void it’s contracts, remember?

Of course I remember. I’m really not as stupid as you seem to think. AIG is not bankrupt. And their contracts cannot be broken, under the LAW.
#651679

On March 17th, 2009 at 6:08 pm, xblade said:

Bankrupt companies have no valid contracts.

AIG isn’t in bankruptcy.
#651681

On March 17th, 2009 at 6:10 pm, xblade said:

Oh, and neither is GM.
#651697

On March 17th, 2009 at 6:27 pm, happyscrapper said:

Flenser is a moron troll. It took a while, but I finally got it.
#651702

On March 17th, 2009 at 6:37 pm, shinola said:

While the principle that AIG executives will receive bonuses totaling in excess of $140MM is utterly disgusting, the fact that both houses of Congress were able to propose legislation TARGETING SPECIFIC INDIVIDUALS for EXCESSIVE TAXATION is utterly frightening. Remember, the “bailout” was approved by the same clowns who now want to target individuals once the public opinion chicken comes home to roost. How much longer before the congress begins targeting those who may not see things the same way as the current administration for special tax treatment…
#651708

On March 17th, 2009 at 6:50 pm, Dimsdale said:

On March 17th, 2009 at 11:33 am, bradley said:

WHY do Democrats continue re-electing complete corrupt idiots like Dodd, Frank, Reid and Pelosi? Could it be that Democrats, by their very nature, are idiots? Seems so. Dodd should be in jail, not in congress. His cellmate (who would likely enjoy the experience) should be Barney (Drool) Frank.

Yes, yes and oh yes!
#651733

On March 17th, 2009 at 7:25 pm, jsmiddleton4 said:

When do we get to ask our congress people the same kinds of questions regarding performance and compensation and bonuses or “extras” that they are asking folks like AIG?
#651737

On March 17th, 2009 at 7:28 pm, jsmiddleton4 said:

I’m pretty sure what is really pissing of folks like Dodd is how this whole thing makes them look. They could care less about us or AIG or money. They care about their own public perceptions. If you really want to piss off these kinds of politicians, just make them look bad. It doesn’t matter if its wrong or right, just that they look good or bad.

This latest AIG thing makes them look bad. There will be hell to pay.
#651747

On March 17th, 2009 at 7:33 pm, fmfnavydoc said:

Remember – The donks were in a hurry to get bailout money to their “friends” that trashed out their businesses and stole from all Americans…

These are the same idiots that didn’t have the time to read the bailout bill before voting on it…

Dodd, Frank, Reid, Pelosi, Geithner and Obama may end up in jail when all of this is over and done with.
#651749

On March 17th, 2009 at 7:35 pm, happyscrapper said:

This latest AIG thing makes them look bad. There will be hell to pay.

In fact, it makes them look utterly stupid. All of them. This Congress is the biggest joke ever foisted on the American public. But I’m not laughing.
#651777

On March 17th, 2009 at 8:25 pm, NestingHawk said:

We know full well they didn’t read the bill. Does anyone remember how in high school teachers were legally obligated to read certain things, usually instructions for standardized tests or the like, out loud to the students? Maybe we need to do the same thing with Congress and their bills.
#651799

On March 17th, 2009 at 8:54 pm, flenser said:

I’m really not as stupid as you seem to think. AIG is not bankrupt.

Those two sentences contradict each other. If AIG is not bankrupt, why the hell are we giving them money by the bushel?

And their contracts cannot be broken, under the LAW.

All contracts can be broken under the law, and usually are.
#651804

On March 17th, 2009 at 8:58 pm, flenser said:

This latest AIG thing makes them look bad. There will be hell to pay.

It will only make them look bad if Republicans can stop jumping to AIG’s defence. That is the one thing that can dig the Democrats out of this hole. Needless to say, many Republicans are anxious to do it.

It ain’t called the stupid party for nothing.
#651805

On March 17th, 2009 at 9:01 pm, flenser said:

AIG isn’t in bankruptcy.

Neither is GM.

Of course GM is the picture of fiscal health compared to AIG, so that’s not a fair comparison.
#651809

On March 17th, 2009 at 9:07 pm, CWinNY said:

Flenser,

The reason for the bailout was to prevent AIG from going bankrupt. Since receiving billions from the government, they have managed to stave off bankruptcy – same story with GM. However, only time will tell if the bailouts prevented bankruptcy or merely delayed it.

Contracts can be broken, but there are usually repercussions for doing such. It remains to be seen if Congress can pass a law that ignores a previous law (exempting bonuses, thanks to a Chris Dodd amendment) and selectively tax one group of people without some repercussions (either legal or political).
#651812

On March 17th, 2009 at 9:11 pm, corona said:

The real story that the drive by media won’t tell you is here.
#651825

On March 17th, 2009 at 9:38 pm, happyscrapper said:

On March 17th, 2009 at 9:11 pm, corona said:
The real story that the drive by media won’t tell you is here.

The house of cards the liberals have built is collapsing as we speak. According to that story, Dodd was not aware of proposing legislation that he actually proposed? How does that work? If someone doesn’t take this piece of human garbage out of DC in cuffs, it will be a grave injustice. Dodd has to go…NOW.
#651830

On March 17th, 2009 at 9:46 pm, jangar said:

See how wonderful us Democrats are in being such good stewards of your wealth?

Bunch of sh!ta$$e$
#651843

On March 17th, 2009 at 10:19 pm, faraway said:

..
Obama signed the AIG bonuses into law
#651848

On March 17th, 2009 at 10:35 pm, detolbert said:

Why isn’t this a top story?
It’s on a couple of places, but that’s all. Very small story in Washington Times

Obama disarming pilots on airlines….
http://barenakedislam.wordpress.com/2009/03/17/king-hussein-bans-guns-from-american-pilots-on-commercial-planes/
#651862

On March 17th, 2009 at 11:08 pm, corona said:

many of the employees who received bonuses are not American
#651874

On March 17th, 2009 at 11:28 pm, DannoJyd said:

AAAHHH! I just love the smell of fear that is coming from the democrats as they work feverishly at defending their blatant stupidity.

I expect we’ll be hearing more ‘Bush did it’, and ‘Rush limbaugh’ in the coming days. Too bad for them that their excuses are falling on deaf ears.
#651902

On March 18th, 2009 at 12:28 am, ITookTheRedPill said:

Senator Barack Obama received a $101,332 bonus from American International Group in the form of political contributions
#651934

On March 18th, 2009 at 4:54 am, graysonret said:

All I see is a government muscling into big business with “bailouts”, in order to eventually, nationalize them. I wonder how long it will be before every corporation has a senator/congressmen who reviews each decision the board would like to make…to protect us citizens, of course. The people are going to wake up, one morning, and no longer find a democratic republic with capitalism, as they “march” off to work, doing the job picked for them, by the local “chiefs”. We almost had that under “hillarycare”, where, we in the medical field, would have been told what field we were needed in…not what we wanted to do.
#652141

On March 18th, 2009 at 10:08 am, corona said:

Sorry, but MM got it wrong this time. Dodd wrote the amendment to stop the bonuses – he did not put in the exemption.

from WSJ: (entire article not available free online)

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.

Also see this.
#652145

On March 18th, 2009 at 10:09 am, corona said:

Senator Christopher J. Dodd, Democrat of Connecticut, who initially proposed adding executive compensation and bonus limits to the stimulus bill, did not include the exception.

Yes, your favorite “newspaper of record”.