This guy is at it again.
Back in the 1990's, Christopher Dodd was the head of the Democratic National Committee. That's right. He managed a lot of the money that went to campaigns after the disastrous 1994 midterms. He was not the right person for the job.
I am very thankful that he is leaving Congress. The reason that I am thankful is something that my brother (the conservative-leaning independent) pointed out to me many years ago. Chris Dodd enabled the cozy relationship between companies and their accounting firms like the one Enron shared with Arthur Anderson before Enron went belly-up.
In 1995, Congress created the Private Securities and Litigation Reform Act. To put it bluntly, it was an act designed to shield companies like Arthur Anderson from "frivlous lawsuits". You know, the kind that happen when a company like Enron defrauds it investors.
Remember Enron? With Arthur Anderson, they were able to "cook the books" and fool investors into putting money into their pyramid scheme now known as the "Enron Scandal", one of the biggest accounting frauds in history. Both companies were part of the reason why we have the Sarbanes-Oxley Act of 2002.
Wikipedia describes the Private Securities Act as follows:
It was designed to reduce the number of "frivolous" securities lawsuits filed in federal courts. In essence, it says that investors cannot proceed with a case unless they already have facts in-hand that strongly suggest a deliberate fraud. Prior to the PSLRA, a case could proceed with minimal evidence and use pre-trial discovery to search for more. Now, plaintiffs need such evidence just to begin, which may be difficult to obtain.
The PSLRA imposes new rules on securities class action lawsuits. It allows judges to decide the most adequate plaintiff in class actions. It mandates full disclosure to investors of proposed settlements, including the amount of attorneys' fees. It bars bonus payments to favored plaintiffs, and permits judges to scrutinize lawyer conflicts of interest.
In other words, you had better have something akin to hot-tub pictures of the accused before you go to trial. Instead of a Justice Department or Attorney General's office having ultimate discretion, judges now have a lot more power. We have recently seen how well that theory has worked recently concerning the BP Oil Spill.
I remember my brother getting incensed about this when he told me about what Chris Dodd did.
You know, President Clinton and Arthur Leavitt (SEC Chairman at the time) didn't want this bill to happen. But Chris Dodd and a few of his Democratic friends blocked them.
I should add that my brother does not like to defend President Bill Clinton, at all.
Actually, Sen. Dodd not only blocked, but overrode them. He overrode his own President's veto and got his bill passed into law.
I think that it's fair to say that had Dodd not created his act, Sarbanes and Oxley might not have had to create theirs.
In 2008, he sided with Freddie Mac and Fannie Mae when he said:
"This is not a time to be panicking about this. These are viable, strong institutions."
In September of that same year, Secretary Hank Paulson and the Federal Government took over both of those institutions, fearing their collapse.
And then there's Countrywide. Mr. Dodd is Chairman of the Senate Banking Committee. In June 2008 he created a program that would help lenders such as Countrywide Financial (who were heavily leveraged with subprime mortgages) in the wake of this country's housing bubble collapse.
Condé Nast Portfolio reported allegations that in 2003 Dodd had refinanced the mortgages on his homes in Washington, D.C. and Connecticut through Countrywide Financial and had received favorable terms due to being placed in the "Friends of Angelo" VIP program, so named for Countrywide CEO Angelo Mozilo. Dodd received mortgages from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes. Dodd had not disclosed the below-market mortgages in any of six financial disclosure statements he filed with the Senate or Office of Government Ethics since obtaining the mortgages in 2003.
Dodd's press secretary said "The Dodds received a competitive rate on their loans", and that they "did not seek or anticipate any special treatment, and they were not aware of any", then declined further comment. The Hartford Courant reported Dodd had taken "a major credibility hit" from the scandal. At the same time, the Chairman of the Senate Budget Committee Kent Conrad and the head of Fannie Mae Jim Johnson received mortgages on favorable terms due to their association with Countrywide CEO Angelo Mozilo.The Wall Street Journal, The Washington Post, and two Connecticut papers have demanded further disclosure from Dodd regarding the Mozilo loans.
On August 7, 2009, a Senate ethics panel issued its decision on the controversy. The Select Committee on Ethics said it found "no credible evidence" that Dodd knowingly sought out a special loan or treatment because of his position, but the panel also said in an open letter to Mr. Dodd that the lawmaker should have questioned why he was being put in the "Friends of Angelo" VIP program at Countrywide: "Once you became aware that your loans were in fact being handled through a program with the name 'V.I.P.,' that should have raised red flags for you."
Wikipedia - Christopher Dodd
We should not forget his work on behalf of beleagured AIG.
And in March [2009], Dodd first denied and then later admitted that he had inserted language into the economic stimulus bill that would allow AIG executives to keep their bonuses.
Mother Jones article "Chris Dodd's Personal Bailout" by Jonathan Stein and Daniel Shulman
Did I also mention that his wife used to be on the board of a company owned by AIG?
In each of these instances, if you follow the money you find that Senator Dodd's "principled stands" has a price tag attached. Senator Christopher Dodd is one of the biggest collectors of campaign contributions from the financial and banking industry and has been for years.
Yes, when financial firms are in trouble or fear that they will be in trouble, they call on Chris Dodd to give them cover.
From the Mother Jones article:
It's not unusual for the chairman of an influential committee to haul in loads of campaign cash from the businesses that are within his committee's jurisdiction. But with his future in the Senate in jeopardy, Dodd truly has to rely on his supporters in the industries he oversees, all while presiding over key components of the various financial bailouts currently under way. That is, he's pushing the envelope when it comes to Washington's pay-to-play routine.
You really should read this article. It will make you sick, but it is a very good article. It made me ask the question, "Does this guy get any money from ordinary citizens?"
Now, he is at it again. He is warning that the nomination of Elizabeth Warren is not going to make it. She is not confirmable, so he says.
If he is on his way out (he is retiring in January 2011), why would he raise such a stink about a person who is eminimently qualified for the position as Elizabeth Warren is for the CFPA? Why should he care so much about a Presidential appointment for a person he will never work with?
Or should I say against?
He is worried about something that really is not his business anymore. Could it be that he is danger of not getting some appointments to boards that he has his eye on? He had to refinance at least one of his homes not too long ago. Could it be that he needs some more cash? Could it be that he has always wanted gobs of cash and, now that he is losing his job, needs to find a way to keep his standard of living where it is at his home in Ireland where he can hobnob with celebrities?
Most of us that read DailyKos believe, fervently, that Elizabeth Warren is, hands down, the best and only choice for the new Consumer Financial Protection Agency created through the financial reform package signed into law recently. We need to let Chris Dodd know that he is done, to go on his way, write his book, get on some boards, and stay out of trouble.
Otherwise, Elizabeth Warren might be coming after you.
If anyone has a phone number for his office, feel free to post it. I will update it as soon as I can.