To the People

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or TO THE PEOPLE.

Tuesday, March 31, 2009

Foxes In Charge of Henhouse, Pt MXXVIII

The Moonie Times had a good piece of muckraking yesterday about Senate Banking Committee Chairman Chris Dodd, the guy who wrote (at the behest of the Treasury Department) the loophole that allowed the AIG bonuses. Not only was Dodd a major recipient of AIG cash, but he rated special attention from AIG executives:
As Democrats prepared to take control of Congress after the 2006 elections, a top boss at the insurance giant American International Group Inc. told colleagues that Sen. Christopher J. Dodd was seeking re-election donations and he implored company executives and their spouses to give.

The message in the Nov. 17, 2006, e-mail from Joseph Cassano, AIG Financial Products chief executive, was unmistakable: Mr. Dodd was "next in line" to be chairman of the Senate Banking, Housing and Urban Affairs Committee, which oversees the insurance industry, and he would "have the opportunity to set the committee's agenda on issues critical to the financial services industry.

***

AIG's employees have been big financial backers of Mr. Dodd. Over his career, Mr. Dodd has collected $238,418 from AIG employees and their spouses, according to the Center for Responsive Politics. Mr. Cassano has donated $7,118 to Mr. Dodd's campaigns.

Mr. Cassano's November 2006 e-mail instructed his colleagues on how to make donations to the senator from Connecticut.

"As he considers running for president in 2008, Senator Dodd has asked us for our support with his reelection campaign and we have offered to be supportive," Mr. Cassano wrote.

The employees were told, "If you agree," to write checks for $2,100 from themselves and their spouses and to send them to Mr. Dodd's campaign within four days. They also were to ask the senior members of their management teams to do the same and send copies of their checks to the company.

The Dodd campaign collected $162,100 from AIG-FP employees and their spouses within six weeks of the e-mail, according to data from the Center for Responsive Politics and the Federal Election Commission.

Each of the seven AIG-FP executives to whom the Cassano e-mail was sent made two $2,100 contributions to the Dodd campaign - one for the primary and another for the general election campaign. The records also show that five of their wives also contributed $4,200 each to the Dodd campaign. The executive vice presidents are Alan Frost, David Ackert, Douglas L. Poling, Jake DeSantis, Jon Liebergall, Robert Leary and William Kolbert.

Mr. Cassano, who resigned in February after AIG-FP posted losses of $11 billion, followed his own advice. He and his wife gave Mr. Dodd's campaign $4,200 each.

Political fundraising in the workplace is legal, but a request from a boss may be viewed as a requirement, campaign watchdogs said.

"Implicit in this [e-mail] is the presumption that, at best, noncompliance will not be looked up favorably ... at worst, it may have negative consequences on the employees," Ms. Krumholz said.
Read the whole infuriating thing here. The Times also has a copy of the e-mail in question.

Labels: , ,