AIG Bonus Furor: Senator Chris Dodd (D-CT) Made The Bonuses Possible

Don’t you just love it when a Senator steps on his/her own foot and trips him/herself up? I do. That’s why I am blogging about Senator Chris Dodd and his hypocrisy about bonuses being paid out by American International Group (AIG).

While Congress was working on the porkulus/spendulus bill, Sen. Dodd added an amendment that I am pretty sure he wishes nobody remembered.

According to Fox Business:

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 now seeking to tax. The amendment made it into the final version of the bill, and is law.

So, the Democrats (and a few ignorant Republicans) are all up in arms about bonuses being paid out in strict accordance with a law that they themselves passed!

Can you say CHUTZPAH?

Here are the rules of the Dodd amendment:

Crack down on bonuses, retention awards and incentive compensation: Bonuses can only be paid in the form of long-term restricted stock, equal to no greater than 1/3 of total annual compensation, and will vest only when taxpayer funds are repaid. There is an exception for contractually obligated bonuses agreed on before Feb. 11, 2009. For institutions that received assistance totaling less than $25 million, the bonus restriction applies to the highest compensated employee; $25 million to $250 million, applies to the top five employees; $250 million to $500 million, applies to the senior executive officers and the next top 10 employees; and more than $500 million applies to the senior executive officers and the next top 20 employees (or such higher number as the Secretary determines is in the public interest).

Now, why would Sen. Dodd have done something like this? Perhaps OpenSecrets.org can provide us with the answer:

Note that Chris Dodd and Barack Obama were the two top recipients of money from AIG.

Now, people have known for over a year that these bonuses were coming out and a Democrat Senator introduced an amendment to make sure that those bonuses were legal. Why is their such a furor going on over all of it?

It is a distraction from other things, that’s why. It turns out that AIG was used as a launderer to spread money around to other banks. Someone doesn’t want us investigating that so they blow the bonus issue way out of proportion to try and make it into some type of scandal.

As for the outrage, I wonder why there was no outrage when public funds were used to shore up UAW retirement accounts?

You can access the complete article on-line here:

Amid AIG Furor, Dodd Tries To Undo Bonus Protections He Put In
Rich Edson
Fox Business
March 17, 2009