All in the Family? AIG and Mrs. Dodd in paradise

Looks like Senator Chris Dodd and his family go back quite a-ways with financially rewarding ties to fallen insurance giant AIG. Here's what the relentless Kevin Rennie posted yesterday on Real Clear Politics

From 2001-2004, Jackie Clegg Dodd served as an "outside" director of IPC Holdings, Ltd., a Bermuda-based company controlled by AIG. IPC, which provides property casualty catastrophe insurance coverage, was formed in 1993 and currently has a market cap of $1.4 billion and trades on the NASDAQ under the ticker symbol IPCR.....

Clegg was compensated for her duties to the company, which was managed by a subsidiary of AIG. In 2003, according to a proxy statement, Clegg received $12,000 per year and an additional $1,000 for each Directors' and committee meeting she attended. Clegg served on the Audit and Investment committees during her final year on the board.

So the Mrs. was part of the management team at an AIG subsidiary. There's not problematic for a member of the Senate Banking Committee, now is it?

This leads Rennie to conclude "Dodd is likely more familiar with the complicated workings of AIG than he was letting on last week"

There's a local angle here Rennie misses, however. Bermuda is a notorious tax haven for foreign corporations. Bermuda does not levy income tax on foreign earnings, and allows foreign companies to incorporate there under an "exempt" status.  The insurance industry has aggressively incorporated affiliates there to skirt US and EU corporate tax rates.

In 2002 one of CT's leading manufacturers, The Stanley Works, announced plans to reincorporate in Bermuda for tax purposes,  When the hardware icon made this announcement, it because a huge issue around the firm's headquarters in the hotly contested 5th District.  Public outcry caused Stanley to back off from its plan.

The point here is I well remember Rep. James Maloney and Rep. Nancy Johnson, as well as Attorney General Dick Blumenthal scolding Stanley, but I don't recall Dodd saying boo about the plan and his name does not readily surface in web searching today on the topic.

Is that because Mrs. Dodd was running a firm that had done the same thing? Guess former Congressman Maloney would have called her firm "unpatriotic" and compared their management to "Benedict Arnold" had he paid attention.  So Dodd hid out, and let the brass at Stanley get harangued for doing something his wife's firm had already done.  

Another further layer of chutzpah is Dodd eagerly advocates a "corporate carbon tax".   while his nearest and dearest ran a company that skirted the business taxes we already have.

The more you think about it you'd rally have to be a meathead not to see these conflicts of interest.. I guess "those were the days" for Dodd-- when folks weren't turning over his rocks and not liking what's underneath.

Go to fullsize image

 

0
Your rating: None

Comments