Catastrophe (23 page)

That Chris Dodd is a popular guy, isn’t he?

Since last summer, the Senate Ethics Committee, chaired by Senator Barbara Boxer, has been investigating whether Dodd knowingly received an illegal gift. But those folks don’t move too fast, so don’t expect a resolution
any time soon. And Boxer is a Democrat, so don’t expect her to roll on one of her own.

QUESTION: How many regular people got a ‘courtesy’ on their mortgages?

AIG

Dodd’s missteps have not been limited to his personal housing transactions. By April 2008, AIG had become the universal symbol of the excesses and greed that caused the global financial meltdown. After receiving a total of $182 billion in federal bailout money, the company did not seem to get either the need for cutting back on their extravagant business practices or the rage that was simmering against them across the country.

Shortly after the company received its first $75 billion in federal bailout funds, reports of lavish corporate outings at expensive resorts began to be reported in U.S. media outlets. Anger against AIG for continuing its profligate ways exploded, reaching its peak when a Connecticut bus tour was organized to visit and protest at the homes of AIG employees.

The final straw came when it was revealed that AIG had doled out more than $100 million in huge bonuses to its executives after it accepted the federal bailout money. When it became apparent that Congress had authorized the payment of these bonuses, the public demanded to know who was behind the approval.

Turns out it was none other than Chris Dodd, chairman of the Senate Banking Committee.

When the first reports of this appeared in the media, Dodd vehemently denied having anything to do with it. But later Dodd changed his story. He said that after checking, he realized that he had “reluctantly” agreed to make the change when the secretary of the treasury asked him to do it. (After a thorough investigation, he was surprised to find out the culprit was himself!)

Of course, as chairman of the Banking Committee, Dodd could have said no. He couldn’t have been forced to do it. But he didn’t—he went right along with the Obama administration.

Dodd’s been slammed in the media ever since. It didn’t help that re-
ports surfaced a few days later showing that AIG executives had emailed employees and urged them to contribute to Dodd because he was about to become chairman of the Senate Banking Committee and would oversee any legislation that related to AIG. Within three days, the AIG folks rounded up $160,000. Dodd is the top recipient of AIG donations, with a total of $281,038—almost three times as large as New York’s Senator Chuck Schumer, who was in second place.

Things weren’t going well for the Connecticut Senator. The AIG story was everywhere. But then it got even worse: It turned out that Dodd’s wife, Jackie M. Clegg, had been appointed to the Board of Directors of IPC Holdings, an offshore company based in Bermuda and controlled by AIG. Between 2000 and 2004 she was paid more than $12,000 a year.
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Dodd just can’t get away from AIG, can he?

But actually, he’s a favorite of all of the financial institutions, not just AIG. Here’s a chart showing the major contributions he’s received, with those from the financial sector in bold:

Those banks and insurance companies sure do like Senator Dodd, don’t they?

THE THOMAS DODD RESEARCH CENTER

On October 16, 1995, the president of the United States, Bill Clinton, flew on Air Force One to Storrs, Connecticut, for the dedication and opening of the Thomas Dodd Research Center at the University of Connecticut.

The Dodd Center will be the repository for Senator Thomas Dodd’s
papers, as well as those of his son, former governor Rowland, and former senator Prescott Bush, the father and grandfather of the presidents Bush.

At the festivities for the opening, no one ever mentioned the sad ending to Dodd’s career when he was censured by the Senate for taking campaign money for his personal use.

The Center was funded by $8 million from the state of Connecticut and $1 million raised by Senator Dodd. Those who privately contributed to this public building and research center have not been disclosed. So we have no idea who made contributions and whether they have any business with the federal government. The names should have been disclosed. Why should private contributions to a public university be kept secret? Someone obviously decided that the names would not be revealed.

Don’t you wonder why?

But one familiar name appears on the Center’s Board of Advisers: Ed Downe.

Wherever you find Chris Dodd, Ed Downe is not far behind. He and his family have continued to contribute the maximum allowable contribution to all his campaigns. He describes himself as an “Independent Investor.”

WHAT’S WRONG WITH CHRIS DODD

Chris Dodd is the epitome of the Washington insider politician who is tone deaf to everything except the Beltway conventional wisdom.

He’s been there for so long, he’s part of the problem.

He expects handouts

He doesn’t understand what the big deal is about the many homes he’s bought with the help of generous partners. Partners who do business with the federal government.

He doesn’t get why his amendment to benefit A.I.G. is inciting people.

In fact, he just doesn’t get it.

ACTION AGENDA

If you think there’s any problems with any of Chris Dodd’s housing transactions, including the Countrywide mortgages, call Barbara Boxer’s office. She’s the chairman of the Committee on Ethics. The Committee that does nothing.

The Capital switchboard number is 202-224-3121. Just ask for her office and let them know what you think.

CHARLIE RANGEL AND AIG

Charlie Rangel is a hypocrite. A big one.

When it was first announced that AIG executives had been awarded outrageous bonuses even despite their company’s despicable performance and congressional Democrats were proposing to wipe out the bonuses out by levying special taxes on them, it was, unexpectedly, Charlie Rangel, the head of the Ways and Means Committee, who demurred. The taxing power, he said, should not be used as a political weapon.

But then, suddenly, Rangel changed his mind. He not only supported but sponsored the bill to impose a 90 percent tax on the bonuses paid to AIG and other employees of banks that received TARP bailout money.

Once Rangel saw which way the wind was blowing and got his marching orders from Pelosi and company, he was suddenly transformed into a populist avenger, ravaging everything in his path.

With his change of heart, he’s become outraged, furious, blaming those who received the bonuses of “getting away with murder”
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and destroying communities. During the debate on the House floor, his rage was in full force: “Are these guys going to get away with what they have done to our communities, what they have done to our homes, what they have done to our pride, what they have done to our country and what they have done for the world?”
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Rangel asked.

But Rangel’s first reaction—to oppose the tax—reflects his long and cozy relationship with the Wall Street and mortgage crowd. He’s taken plenty of campaign money from them over the years. Here’s a look at his top donors in 2008:

You’ll notice that six of his top ten donors—those in boldface—are from the financial and banking field. He’s a real favorite of the Wall Street guys. Could it have something to do with his writing the tax code as chairman of the House Ways and Means Committee? These folks want access. Could that be why Rangel was number one on Citigroup’s list of recipients, receiving more than any other member of Congress? Or why he was number one on Credit Suisse’s list, too? And JPMorgan Chase as well? Only one House member received more than he did from AIG. This is nothing new. Throughout Charlie Rangel’s career, the banks have been contributing to him big time. Here’s a look at the total since 1989:

But now Rangel has no use for his old friends with deep pockets. He has even criticized those in the Obama administration who permitted the bonuses, calling them “out of touch”
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Speaking on New York 1 television, Rangel said that Obama’s economic team had blown it:

Hmmm. Could Charlie have actually forgotten that he’d gone knocking on AIG’s big door last year looking for a $10 million handout for a school to be named after him? Isn’t that kind of like a bonus? Is getting a $10 million donation to feed your ego somehow less offensive than a $10 million bonus for anything else? And what about about the $5 million donation he had gotten for his school from a foundation controlled by Maurice Greenberg, the former CEO of AIG? How is that any different than a bonus?

Or could it actually be even worse—if published reports are true, that it was tied to a
quid pro quo
for legislation favorable to AIG?

THE CHARLES B. RANGEL CENTER FOR PUBLIC SERVICE

What is it about Washington that makes normally sensible men act crazy when they decide they want to build a monument to themselves or to their family?

Rangel seems to have become infected with this disease—at least when it comes to his decision to raise funds to pay for a school to glorify his name. After due consideration, Rangel decided who would help pay for his project: we would.

In 2007, Rangel submitted an earmark for $1.9 million to fund the Charles B. Rangel Center for Public Service at City University of New York.
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Now, that takes nerve! Using your power as a congressman to appropriate federal tax money to finance your favorite egotistical project.