SEN. DODD'S CAVALCADE OF SCANDAL (sinking under his smelly deals)

COMMENTS The Nov 9, 2008 Hartford Courant reported federal agents are investigating deals mortgage giant Countrywide Financial's co-founder Angelo Mozilo made to Dodd. Since the Dodd story broke in June, the five-term senator has offered contradictory fragments of explanations and intentions. Dodd gallops the gamut from calling the allegations of special treatment "outrageous" to pledging repeatedly and specifically to release documents related to the $800,000 in sweetheart deals he got from Countrywide.

Still claiming "there's nothing there," Dodd refuses to say whether his Senate campaign committee's payments of $60,000 last summer to a Washington law firm----- which has a history of representing Democratic senators in trouble-----were for his defense in the Senate ethics investigation of his dealings with Countrywide. Dodd suggested, before he fled to his third home in Ireland in August, that Countrywide was not cooperating in providing information.

Dodd still claims there was nothing unusual about the $800,000 in mortgages he got from Countrywide in 2003, but records refute that, too. Documents indicate that Dodd was getting a mortgage of $276,150 on his second home in Connecticut on July 3, 2003. The amount was reduced to $275,042 and the mortgage he was refinancing was paid off. Dodd and his wife also got a home equity loan on their Connecticut property in East Haddam from Countrywide that day. But the course those loans took was very strange.

============================================

For nearly a year and a half, Countrywide failed (or declined) to secure its interest in Dodd's home by taking the ordinary and essential step of presenting the documents to the local town clerk and recording them in the land records.

The standard routine is for the homeowner to sign the loan documents, the borrowed money is sent to the lender being paid off and the new mortgage is recorded on local land records within a few days. Dodd, however, signed some (but not all) of his loan documents himself. Agents of Countrywide signed his $275,042 Connecticut mortgage. His previous mortgage with Countrywide was paid off but the new mortgage did not appear on the local land records for an astonishing 16 months.

For nearly a year and a half, Countrywide failed (or declined) to secure its interest in Dodd's home by taking the ordinary and essential step of presenting the documents to the local town clerk and recording them in the land records. This is exceedingly rare in the mortgage business. Too bad for Dodd mortgages leave detailed paper trails. Dollars to donuts Dodd is on his hands and knees pleading with Obama to call off the Feds.

How does Countrywide's Angie Mozilo get into his
$170,000 Lamborghini with Sen Dodd in his back pocket?

"Top 20 Recipients of AIG Contributions in 2008"

"Sen Dodd (D-Conn) is THE lawmaker who legislated US government protection for AIG bonuses via the bailout package."

"Sen. Dodd has been rewarded in the 2008 election cycle with $7.65 million in campaign contributions
he took in $11.7 million in all — from the securities, insurance, real-estate and commercial-banking industries...
Citigroup, $310,294; SAC Capital Partners, $282,000; United Technologies, $263,400; AIG, $224,678; Bear Stearns, $205,600; St. Paul Travelers, $205,400; Royal Bank of Scotland, $203,750;
Goldman Sachs, $175,600; Morgan Stanley, $155,000; Credit Suisse, $154,550; Merrill Lynch, $134,950; The Hartford, $94,350; Bank of America, $91,300;
JPMorgan Chase, $129,150; USB, $101,900; Hartford Finance Services, $101,500, Lehman Brothers, $128,400; KPMG, $113,100; General Electric, $108,250; Deloitte Touche, $108,000
With $165,400, Sen. Dodd also tops the list of members of Congress who took campaign cash from Fannie Mae and Freddie Mac since 1989.
Sen. Barack Obama, the self-styled agent of change, is a distant second at $126,000...."

"AIG's Small London Office May Have Lost $500B"
Ground zero for AIG's spectacular implosion, which has soaked up more federal bailout money
than any other entity, appears to have been a small London branch office
that may have lost nearly half a trillion dollars in bad deals."

Obama Received A $101,332 Bonus From AIG

AIG chiefs pressed to donate to Dodd
As Democrats prepared to take control of Congress after the 2006 elections,
a top boss at the insurance giant American International Group Inc. told colleagues that Sen. Christopher J. Dodd
was seeking re-election donations and he implored company executives and their spouses to give.
The message in the Nov. 17, 2006, e-mail from Joseph Cassano, AIG Financial Products chief executive, was unmistakable:
Mr. Dodd was "next in line" to be chairman of the Senate Banking, Housing and Urban Affairs Committee, which oversees the insurance industry,
and he would "have the opportunity to set the committee's agenda on issues critical to the financial services industry.

"As Democrats, and certainly as "Senators", are we not ALL "above the law"?"

It’s cool. He’s a democrat. Next!

As Democrats prepared to take control of Congress after the 2006 elections, a top boss at the insurance giant AIG told colleagues that Sen. Christopher J. Dodd (D-Conn) was seeking re-election donations and he implored company executives and their spouses to give. The message in the Nov. 17, 2006, e-mail from Joseph Cassano, AIG Financial Products chief executive, was unmistakable: Mr. Dodd was "next in line" to be chairman of the Senate Banking, Housing and Urban Affairs Committee, which oversees the insurance industry, and he would "have the opportunity to set the committee's agenda on issues critical to the financial services industry.

REFERENCE----TWENTY FIVE PEOPLE AT THE HEART OF THE MELDOWN Who led us down the Road to Ruin?
The Guardian, Monday 26 January 2009 Edition.
BY Julia Finch, with additional reporting by Andrew Clark and David Teather.
http://www.guardian.co.uk/business/2009/jan/26/road-ruin-recession-individuals-economy

Twenty-five people at the heart of the worst economic turmoil since the Great Depression is not a natural phenomenon but a man-made disaster in which we all played a part. In the second part of a week-long series looking behind the slump, Guardian City editor Julia Finch picks out the individuals who have led us into the current crisis.

Joseph Cassano, AIG Financial Products

Cassano ran the AIG team that sold credit default swaps in London, and in effect bankrupted the world's biggest insurance company, forcing the US government to stump up billions in aid. Cassano, who lives in a townhouse near Harrods in Knightsbridge, earned 30 cents for every dollar of profit his financial products generated - or about £280m.

Cassano was fired after the division lost $11bn, but stayed on as a $1 million-a-month consultant....and walked away with $300 million in bonuses.

"It seems Cassano single-handedly brought AIG to its knees," said John Sarbanes, a Democratic congressman.

Chris Dodd (D-Conn) has been caught receiving and doing favors, then lying about it.

Define "caught". Until I see him being led out of a court room in handcuffs, he's getting away with it.

Sue he is getting away with it so are probably 50 others on the Hill. It’s a pack of thieves up there and it’s time they were cleaned out.

“It is hard for us, without being flippant, to even see a scenario within any kind of realm of reason that would see us losing one dollar in any of those transactions.” — Joseph J. Cassano, a former A.I.G. executive, August 2007

http://www.nytimes.com/glogin?URI=http://www.nytimes.com/2008/09/28/business/28melt.html&OQ=_rQ3D2&OP=1c124185Q2FQ3Ar_Q3FQ3AVaLqgaapQ27Q3AQ27mmGQ3Am4Q3AQ27GQ3AQ3Fyqi._qqQ3AQ27Gh_-pQ25Q20ph-

Behind AIG ‘s crisis, a blind eye to risks
Bulletin, The (Bend, OR) - Sunday, September 28, 2008
Author: Gretchen Morgenson The Bulletin

Behind AIG ‘s crisis, a blind eye to risks
Bulletin, The (Bend, OR) - Sunday, September 28, 2008
Author: Gretchen Morgenson The Bulletin
Two weeks ago, the nation’s most powerful regulators and bankers, led by Treasury Secretary Henry Paulson, huddled in the Lower Manhattan fortress that is the Federal Reserve Bank of New York, desperately trying to stave off disaster.

American International Group, the world’s largest insurer, was teetering. AIG needed billions of dollars to right itself and had suddenly begged for help.

The only Wall Street chief executive participating in the meeting was Lloyd Blankfein of Goldman Sachs, Paulson’s former firm. Blankfein had particular reason for concern.

Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was AIG ‘s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said.

(snip)

When Cassano first waded into the derivatives market, his biggest business was selling so-called plain vanilla products like interest rate swaps. Such swaps allow participants to bet on the direction of interest rates and, in theory, insulate themselves from unforeseen financial events.

Ten years ago, a “watershed” moment changed the profile of the derivatives that Cassano traded, according to a transcript of comments he made at an industry event last year. Derivatives specialists from J.P. Morgan, a leading bank that had many dealings with Cassano ‘s unit, came calling with a novel idea.

Morgan proposed the following: AIG should try writing insurance on packages of debt known as “collateralized debt obligations.” CDOs were pools of loans sliced into tranches and sold to investors based on the credit quality of the underlying securities.

Because the underlying debt securities - mostly corporate issues and a smattering of mortgage securities - carried blue-chip ratings, AIG Financial Products was happy to book income in exchange for providing insurance. After all, Cassano and his colleagues apparently assumed, they would never have to pay any claims.

Cassano and his colleagues minted tidy fortunes during these high-cotton years. Since 2001, compensation at the small unit ranged from $423 million to $616 million each year, according to corporate filings. That meant that on average each person in the unit made more than $1 million a year.

Goldman Sachs was a member of AIG ‘s derivatives club, according to people familiar with the operation.

Lucas van Praag, a Goldman spokesman, declined to detail how badly hurt his firm might have been had AIG collapsed two weeks ago. He disputed the calculation that Goldman had $20 billion worth of counterparty risk to AIG , saying the figure failed to account for collateral and hedges that Goldman deployed to reduce its risk.

Regarding Blankfein’s presence at the Fed during talks about an AIG bailout, he said: “I think it would be a mistake to read into it that he was there because of our own interests. We were engaged because of the implications to the entire system.” Van Praag declined to comment on what communications, if any, took place between Blankfein and Paulson during the bailout discussions.

A Treasury spokeswoman declined to comment about the AIG rescue and Goldman’s role.

Regardless of Goldman’s exposure, by last year, AIG Financial Products’ portfolio of credit default swaps stood at roughly $500 billion. It was generating as much as $250 million per year in income on insurance premiums, Cassano told investors.

For his part, Cassano apparently was not worried that his unit had taken on more than it could handle. In an August 2007 conference call with analysts, he described the credit default swaps as almost a sure thing.

“It is hard to get this message across, but these are very much handpicked,” he assured those on the phone.

(snip)

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3225213/AIG-trail-leads-to-London-casino.html

AIG trail leads to London ‘casino’
Since 1987 the American financier Joseph Cassano has divided his time between London and Connecticut, where AIG, the world’s largest insurance company, runs a subsidiary called AIG Financial Products.

Thanks for the great info.

Goldman sharks in "the govt" are circling taxpayers.

THE ENEMY WITHIN Sept 26, 2008 The Goldman Sachs Group announced that Edward M. Liddy resigned as a member of its Board of Directors in light of his new role as Chairman and CEO of AIG, Inc. His resignation was effective Sept 23, 2008. Mr. Liddy had been a director of Goldman Sachs since June 2003....he served as chairman of the Audit Committee, a member of the Corporate Governance and Nominating Committee and the Compensation Committee.

GOLDMAN-SACHS-A-THON After the market meltdown, many Goldman Sachs execs fled to the "safety" of the Federal Reserve and Dept of US Treasury........and are sucking up tax dollars as we type. Tax cheat (and US Treasury Secy) Tim Geithner hired a Goldman Sachs lobbyist as his COS. ...even though Obama said his admin is off-limits to lobbyists.

Ex- Goldman Sachs head, Hank Paulson as Tresury Secy, stationed his G/S right hand man---Neel Kaskari---- to (cough) oversee $350B TARP payouts. We still do not know in which G/S rathole these two secreted the first $350B. Paulson threatened US Senators with Martial Law if they did not vote him the bailout billions. Paulson demanded the TARP be exempt from judicial, legislative, and regulatory review. $350B disappeared without a trace---and NO significant effect on the economy.

WHEN is the Congress going to go after Joseph Cassano who is partly responsible for this ENTIRE MESS??? I KNOW he lives in London but that never stopped them before!! Chris Dodd has some EXPLAININ” to do .....crickets chirping??

(no link)

APPOINTMENTS Treasury Pick t ...
Washington Post, The (DC) - Thursday, June 22, 2006
APPOINTMENTS

Goldman Sachs Group chief executive Henry M. Paulson Jr., the nominee for U.S. Treasury secretary, will sell his Goldman stake as part of an agreement with the Office of Government Ethics, a White House aide said.

He owned 3.2 million Goldman shares as of March worth about $485 million, according to regulatory filings. White House spokeswoman Dana Perino said Paulson also agreed to sell some investment funds that she did not specify.

Paulson, who was paid $38.3 million last year, will also exercise and sell all of his options, including those that were previously unvested. His disclosure to the ethics office also lists a stake in a Goldman fund that owns part of Industrial & Commercial Bank of China. The investment may cause friction with the Senate, which must confirm Paulson and where some politicians want sanctions against China for what they claim are unfair trade practices.

(snip)

//

http://www.forbes.com/lists/2006/12/VY36.html

Henry M Paulson Jr’s Ownership Of Goldman Sachs Group Industry Medians
Stock Owned (% of Co) 0.92% 0.34%
Stock Owned $632.4 mil $0.05 mil

//

http://www.marketwatch.com/news/story/goldman-led-group-pact-buy-10/story.aspx?guid={AF2A8372-7A7D-4B99-A3A2-0DDD789219D6}

Beijing approves Goldman-led deal
Three banks to spend $3.8 bln for ICBC stake of 10%
By Chris Oliver, MarketWatch

http://query.nytimes.com/gst/fullpage.html?res=9C0DE1DB113FF934A15752C0A9609C8B63&n=Top/Reference/Times%20Topics/People/B/Barboza,%20David

Abstract: Many of world’s largest banks and financial institutions are acquiring stakes in banks in China to gain foothold in fast-growing economy; investment group led by Goldman Sachs , Allianz and American Express Co will pay about $3.8 billion for 10 percent stake in Industrial & Commercial Bank of China; Goldman is expected to invest $2.58 billion in bank, Allianz $1 billion and American Express $200 million; group led by Citigroup will acquire about 85 percent of Guangdong Development Bank for $3 billion; Bank of America will invest $3 billion into China Construction Bank; investors led by Royal Bank of Scotland and Merrill Lynch have put $3.1 billion into Bank of China; Temasek Holdings agrees to invest more than $4 billion (M)
Last update: 6:45 a.m. EST Jan. 27, 2006

http://www.thestandard.com.hk/news_detail.asp?we_cat=5&art_id=52184&sid=15114309&con_type=1&d_str=20070828&fc=2

William Pesek: Subprime crisis will hit China
Ocean County Observer (Toms River, NJ) - Sunday, September 2, 2007
Author: Ocean County Observer

Henry Paulson could be excused for wondering what he was thinking.

The former Goldman Sachs Group Inc. chief executive officer accepted the job of U.S. Treasury secretary in mid-2006. Since then, it has been nothing but frustration over China’s reluctance to loosen its currency policy, and a U.S. financial system riddled with risks.

Now, Paulson is faced with the specter of these ostensibly unconnected challenges fusing into one.

Last week, two of China’s four main state-owned banks, Industrial & Commercial Bank of China Ltd. and Bank of China Ltd., disclosed a combined $11 billion investment in U.S. subprime-mortgage debt. The odds favor other major Chinese banks incurring losses.

//

http://www.twincities.com/business/ci_11997102

03/25/2009

BRIEFLY INTERNATIONAL

Goldman Sachs Group Inc. and Industrial & Commercial Bank of China Ltd. said Wednesday they have created a new lock-up agreement preventing Goldman from selling much of its stake in the Chinese bank until next year ...

"Sue he is getting away with it so are probably 50 others on the Hill."

Can you imagine what things would be like if we actually had a functioning press?

But we don't, do we?

It’s a pack of thieves up there and it’s time they were cleaned out."

But keep the good ones, please.

Cassano (as well as Madoff's London operation) is getting more scrutiny in London and definitely should be getting more scrutiny here.

Once Eliot Spitzer successfully intimidated and blackmailed AIG into removing Maurice "Hank" Greenberg from AIG, Cassano had no check on his CDS printing press at AIGFP.

Spitzer Jumps Into AIG Bonus Furor - CNBC, March 19, 2009

Of course, his father's NY real estate company where he is very comfortably hiding out and which he will eventually inherit, would not survive without the "evil bankers", especially as he is expanding it now in Washington, D.C. Yet another liberal hypocritical destroyer of Other People's Money.

Storm center hanging over Chris Dodd - The Hill, March 19, 2009

...

Last weekend, a week after a new poll showed Dodd trailing former Rep. Rob Simmons (R) by 1 percent, 43-42, Simmons entered the race, assuring Dodd would face a rare fight for his political life.

And AIG was effectively thrown on top of Dodd’s other controversies: the so-called VIP mortgages he received from Countrywide Financial and a more recent flap about a cottage in Ireland he bought with a friend who was an associate of a man for whom Dodd later sought a pardon.

....

PINGO

.......a new poll showed Dem Dodd trailing the Pubbie 43-42......assuring Dodd would face a rare fight for his political life.

Tra la la la la.......those numbers are significant b/c an incumbent should be polling higher.

They are all Lawyers, what do you expect? Do not elect any Lawyers, that simple.