Just One Example of Bailout Fiasco

Posted on March 17, 2009
Filed Under Current Events, Political Rantings |

The Democrats spend trillions of dollars in the first weeks of the Obama administration to bail out desperate companies and to try to "stimulate" the economy. When their policies and spending outrage the public, the fain shock and indignation. Take for example the latest regarding the AIG bonus payouts. The Dems are all outraged that this company would dare to pay millions in contractual bonuses to executives after receiving billions in federal tax dollars. Chris Dodd ( who has received, with Obama, hundreds of thousands in campaign contributions from AIG) was livid:

"We want and expect a full briefing," said Senate Banking Committee Chairman Christopher Dodd, D-Conn. "And we also want answers regarding where the Fed has been on conditions for these types of bonuses since the rescue effort first began.

Just one problem with his supposed outrage. He is responsible for the bonuses being paid. It is his mistake and the Dems own this scandal.

While the Senate was constructing the $787 billion stimulus last month, Dodd added an executive-compensation restriction to the bill. The provision, now called “the Dodd Amendment” by the Obama Administration 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.

Dodd’s original amendment did not include that exemption, and the Connecticut Senator denied inserting the provision.

“I can’t point a finger at someone who was responsible for putting those dates in,” Dodd told FOX. “I can tell you this much, when my language left the senate, it did not include it. When it came back, it did.”

“Because of negotiations with the Treasury Department and the bill Conferees, several modifications were made,” Dodd Spokesperson Kate Szostak in a response to FOX Business.

The provision excluding those bonus payments made it into the final version of the bill, and is law.

Separately, Sen. Dodd was AIG’s largest single recipient of campaign donations during the 2008 election cycle with $103,100, according to opensecrets.org. Also, one of AIG Financial Products’ largest offices is based in Connecticut.

So let’s get this strait: Dodd takes big campaign money from AIG, writes into the stimulus package an agreement that contractual bonuses could be paid, didn’t read or notice that something in the bill got changed (yea, right) and is now outraged that those bonuses were in fact paid. He now seeks to recover the bonuses through unfair and punitive taxation of the bonuses.

Think that he’ll return the campaign money as a gesture of good faith? Don’t hold your breath.

Michelle Malkin has more.