Sen. Christopher Dodd (D-Connecticut,) who is chairman of the Senate Banking Committee was given preferential treatment by Country Wide Mortgage Co, the leading mortgage company which made bad decisions and needed bail-out from government.
The lawmaker from Connecticut, an ardent democrat and supporter of Obama is under investigation by the senate ethics committee for refinancing his homes with a special rates by the mortgage company—part of the “V.I.P.” program that gave lower than usual rates given to “friends” of the company.
Dodd got a low 4.25 percent interest rate on a $506,000 refinancing loan for his Washington town house, and another low 4.5 percent rate on the $275,000 loan on his East Haddam home—all because he is classified as VIP and friend of Country Wide. —US News / AP (01/23/09)
This is the same 64-year old Dodd who received hefty campaign money from AIG. Now, the senator is being blamed for letting the bonuses to be paid by the American International Group (AIG) to its employees amounting to up to a staggering $165 million. The money however is a drop in the bucket—a small part of the trillions of dollars Barack Obama has planned to spend using American taxpayers’s money. The spending can compromise the finances of the next generation.
After wavering on his role in the AIG mess, Dodd is singled out as the person who added protection in the stimulus package that allowed the giving away of bonuses to AIG executives who were responsible for the company’s failure.
“Republicans are also turning a spotlight on Dodd’s longtime friendship with Edward Downe Jr., a former director of the Bear Stearns investment firm who was snared in an insider trading scandal. Dodd owned a condo with Downe in a fashionable Washington neighborhood but bought out Downe’s share in 1990 after learning Downe was under investigation. Downe eventually pleaded guilty to trading inside information.”—-Yahoo News/ AP (03/20/09, Miga A)
If Obama’s administration is filled with people of shabby integrity, how can America expect a quick recovery from the economic crisis? Many critics think there isn’t much difference in how Capitol Hill is being run. The same rotten greed, denials, and lies are coming out early on in the new administration whose campaign promise is “change.”
The exposure of Dodd comes at a bad time that Treasury secretary Tim Geithner is besieged with calls to resign after accepting a job that looks after public money when he is among those who avoid paying taxes. According to Dodd, Geithner asked him to remove the executive bonus restriction in the big economic stimulus package lawmakers in Capitol Hill approved last month. This decision permitted AIG officials to rake in the controversial bonuses. (Photo Credit: http://ussenate.gov PD)=0=
RELATED BLOG: “AIG’s excessive bonuses of $165 million infuriate Americans” Posted by mesiamd at 3/18/2009