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CLAW FOR A CLAW:

“there ought to be a law…”

After a really bummed-out day, Senator Chris Dodd and Treasury Secretary Timmy Geitner enjoy "Seafood Nite" in the AIG executive dining room with host; Ed Liddy, CEO of AIG

WASHINGTON  -  After earlier vehemently denying all knowledge whatsoever, Senate Banking Committee Chairman Chris Dodd admitted in a full reversal on Wednesday he was indeed responsible for a legislative loophole that let AIG pay executives $165 million in bonuses, adding that he acted at the behest of the Obama administration.

The back-peddle was; “We wrote the language in the bill to deal with bonuses, golden parachutes, excessive compensation — executive compensation, that was adopted unanimously by the United States Senate in the stimulus bill,” said Dodd, a Connecticut Democrat.

And so, the language worked as intended, and that’s that. This explains how and why the AIG Financial Products boys are entitled to their taxpayer funded $165 million in bonuses.

Senator Chris "The Claw" Dodd vows to push for return AIG bonuses using clawback methods

As a side dish, Chris Dodd  took in more than $103,000 in the 2008 election period from this same disaster division of AIG, based in Wilton, Connecticut. Dodd, serving since 1981, is the Senior Senator from the State of…Connecticut.

Not that it really matters, but it’s only fair to note that the Obama campaign too benefited from substantial AIG contributions.

THE BUCK STOPS…NOWHERE:

Edward Liddy, CEO of AIG, thinking about what there is to think about.

Edward Liddy, CEO of AIG is rumored to testify on Wednesday at a U.S. congressional hearing on the bailout of the troubled insurer. Gee, it’s about time, don’t ya think?

No word on whether or not this one is going to be televised, but if even on pay-per-view, sign me up. Aside from the obvious questions about bonus pay and such, I really just want to hear what this guy has been doing since taking the “helm” of this barge, way back in June, 2008.

Separately, at a press conference yesterday in the White House East Room, in decrying the misdeeds AIG, President Barack Obama attempted a really lame joke:

“Excuse me,” he said Monday, after coughing into the microphone. “I am choked up with anger here.”

There is nothing remotely funny here, and this, do nothing, “I’m just as upset as you” attitude from Mr. Obama is an unnecessary waste of copious amounts of both time and money.

Let’s get clear on this. If the numbers from the government are to be believed, AIG has been bailed out three times thus far for $180 billion. The “deal” sold to the taxpayers, was to replace the AIG CEO with Liddy, and take a preferred ownership of 80% of firm’s equity. Liddy’s job was to, at a bear-bones minimum, protect the taxpayer’s “investment,” and hopefully make us a buck or two.

Ensuring the taxpayers interest at Insuror AIG's HQ in NYC

When you get a “clean-up” job like this, the first order of business is to find out what where the “dogs” are hiding, to avoid getting twice-bitten. It’s just that simple, and if this task is too grand, then you go get a new “dog catcher.” Mr. Obama – do something – this solvable problem is running ahead of what you were elected to do, and people are taking notice.

Edward Liddy, for whatever reason, is not doing his job. Perhaps he’s lost interest since dropping his million dollar salary down to a buck, but he’s no turnip when it comes to running a business.

Liddy is currently on the board of 3M and The Kroger Company. Prior to taking the AIG gig, Liddy had to resign his board position at Goldman Sachs to avoid conflicts in what is now becoming and yet, another taxpayer fed money eating, double-dipping “counterparty” dog to bite our AIG.

Liddy is also the former chairman, president, and CEO of Allstate Insurance. Before Allstate, he held the position of chief financial officer of G.D. Searle & Company, where former Defense Secretary Donald Rumsfeld held the CEO position. Additionally, he has recently become a partner at the private equity firm of  Clayton, Dubilier & Rice, which he joined in 2008. Educated at and with a degree from Catholic University of America, he also holds an MBA from George Washington University.

Suffice to say, the insurance business is not “over his head” or pay grade, so the question remains – what exactly has Mr. Liddy been doing at AIG since June 2008? If not too late already, maybe somebody will “man-up” and give us some answers – we deserve, and should settle for no less.

A man waits for...something. At the back door of AIG in NYC

Does anybody notice the resemblance Bernie is taking on to the guy on a dollar bill? Remember those?

And, I’m sure it’s not a big deal, and though she has not been charged with any wrongdoing related to her husband’s $50 billion Ponzi scheme, Ruth Madoff withdrew $15 million the day before Bernard Madoff’s arrest. According to the complaint filed Wednesday, Ruth Madoff pulled out $5.5 million on November 25 and another $10 million on December 10, the day that Bernie Madoff confessed his $50 billion Ponzi scheme to their sons, who both worked at his securities firm. He was arrested the next day. Ruth Madoff and her brother-in-law, Peter Madoff, posted $10 million in bail — which some think she might have used some of the money to bail out Bernie. Ruth also did the books for the business. Government officials investigating the case have not charged her with anything, but they have taken away her passport as a possible flight risk. Fly away, I say. Watch out for geese.