Category Archive 'Chris Dodd'

29 Apr 2010

The Dodd Bill: HuffPo Gets It Right

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Frank Luntz debunks the democrats’ supposed financial “reform” at Huffington Post of all places. This editorial would fit just fine on any conservative blog site.

The New York Times’ headline said it all: “Off Wall St., Worries About Financial Bill”. The Democrats in Washington may think it’s a slam dunk, but the rest of America doesn’t agree.

Look, those who are on the side of significant financial reform are fighting on the side of the angels — and with broad public support. We are fed up with Wall Street abuses and arrogance that makes life for the rest of us on Main Street more difficult. Let’s hold people and businesses more accountable and responsible for what they do and how they do it.

But that doesn’t suddenly equate to support for the legislation now being considered by the Senate. In exactly the same way that the public wanted healthcare reform, just not Obama’s healthcare reform, they want something done to punish the perpetrators of the financial meltdown, but not at the expense of their own checking accounts — or American economic freedom.

The dirty secret of the Senate financial reform bill is that some of its biggest supporters work on Wall Street. Recipients of taxpayer bailout money have no concerns about the bill — in fact, the CEOs of Citi and Goldman Sachs have publicly endorsed it, and several of the other big banks have expressed support. It keeps the “too big to fail” guarantees in place for another generation of financial services companies.

But here’s where it gets really interesting. The Democrats supporting the current legislation have assured an anxious electorate that whatever funds are used to create whatever regulatory scheme created will come from the banks, not the taxpayers. Let me emphasize that so that even casual readers will catch it: the Democrats promise that you won’t pay for their legislation, banks will.

Really?

Since when have corporations ever paid taxes, fees or penalties? Employees end up paying in the form of lower salaries and benefits. Customers end up paying in the form of higher costs.

And in this case, every account holder will be forced to pay higher fees on their checking account and savings account. That’s you, my friendly reader. Can you say “checkbook tax”? I can, and I think lots of candidates will be saying it come November. Is that what you really want to do to your constituents, Senator Lincoln? Is that what you really want to explain on the campaign trail, Senator Bennett?

But it goes deeper than just taxation and regulation. Wall Street can pass it all onto consumers. Main Street cannot. And that’s because Wall Street firms have all those pesky well-connected, nicely dressed lobbyists to ensure that whatever is passed strengthens their hand at the expense of the little guy.

Regardless of what side you’re on, the financial reform bill is special interest heaven — a bill written by lobbyists, for lobbyists, and will probably be implemented by lobbyists. The Dodd bill has carve-outs right from the get-go. Real estate agents, title companies, the Farm Credit system, even Fannie Mae and Freddie Mae are exempt from its onerous and costly provisions. And for everyone else, it’s been a special interest feeding frenzy.

More than 130 companies have publicly hired lobbyists seeking their own loophole. Mars Candy wants to continue to use derivatives to hedge against price hikes in sugar and chocolate, so they’ve hired a lobbyist. Harley Davidson wants to protect dealer financing of their bikes, so they’ve hired a lobbyist. And eBay wants to not harm its subsidiary, PayPal, so they’ve hired … well … a team of lobbyists.

But most average Americans — the ones who bailed Wall Street out in the first place — cannot afford lobbyists, and won’t be exempted from the legislation.

There’s a reason why American trust in government is at an all-time low. Voters believe legislation like this is passed not for the public interest, but for special interests. And that is certainly the case with the Dodd bill.

24 Feb 2010

Obama and Other Democrat Senators Condemn Nuclear Option

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Back in 2005, when democrats held up George W. Bush’s judicial appointments in an unprecedented display of partisanship, the Republican majority in the Senate threatened to use the so-called “nuclear option,” i.e., to use reconciliation to overcome the filibuster to achieve judicial confirmations.

Diane Feinstein warns: “It begins with judicial nominations, next will be executive appointments, and then legislation.”

5:00 video

Biden: “I pray God when the Democrats take back control we don’t make the kind of naked power grab you are doing.”

In 2005, John McCain split from the Republican Party and derailed the proposed nuclear option, imposing his own compromise.

24 Mar 2009

Chris Dodd’s Humble Irish “Cottage”

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WSJ:

The story starts in 1994, when the Senator became one-third owner of a 10-acre estate, then valued at $160,000, on the island of Inishnee on Galway Bay. The property is near the fashionable village of Roundstone, a well-known celebrity haunt. William Kessinger bought the other two-thirds share in the estate. Edward Downe, Jr., who has been a business partner of Mr. Kessinger, signed the deed as a witness. Senator Dodd and Mr. Downe are long-time friends, and in 1986 they had purchased a condominium together in Washington, D.C.

Mr. Downe is also quite the character. The year before the Galway deal, in 1993, he pleaded guilty to insider trading and securities fraud and in 1994 agreed to pay the SEC $11 million in a civil settlement. The crimes were felonies and in 2001, as President Clinton was getting ready to leave office, Mr. Dodd successfully lobbied the White House for a full pardon for Mr. Downe.

The next year — according to a transfer document at the Irish land registry… — Mr. Kessinger sold his two-thirds share to Mr. Dodd for $122,351. The Senator says he actually paid Mr. Kessinger $127,000, which he claims was based on an appraisal at the time. That means, at best, poor Mr. Kessinger earned less than 19% over eight years on the sale of his two-thirds share to Mr. Dodd. But according to Ireland’s Central Bank, prices of existing homes in Ireland quadrupled from 1994 to 2004. …

In his Senate financial disclosure documents from 2002-2007, Mr. Dodd reported that the Galway home was worth between $100,001 and $250,000. However, Mr. Rennie reports that in 2006 and 2007 the Senator added a footnote that reads: “value based on appraisal at time of purchase.”

Mr. Dodd had good reason to add the qualifier. Senate rules call for valuations to be current and anyone who looked into the estimate would immediately spot Mr. Dodd’s lowballing. A June 17, 2007 feature in Britain’s Sunday Times did just that. “Diary” observed that in Roundstone “a two-bed recently made E680,000 ($918,000) and a cottage is currently on offer for E800,000.” Noting Mr. Dodd’s estimate of his property — between E75,000 and E185,000.

Toby Harnden at the Telegraph:


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