We don’t see too much upside here, but Republicans are trying to make some political hay out of the AIG (AIG) mess by blaming it all on Connecticut Sen. Chris Dodd, a Democrat.
Here’s the Cliff’s Notes version of what’s going on:
Chris Dodd inserted a specific provision into the stimulus that says any pay limitations would not apply to contracts agreed to prior to February 11, 2009. AIG also happens to be Chris Dodd’s biggest donor. And AIGFP is housed in Connecticut.
That’s it, really. Everyone is trumpeting the story. Rep. Eric Cantor is pushing it. Drudge has a link to it. The National Review is all over it, as is Fox News (natch). We don’t think it’s that big of a deal. Like, sure Sen. Dodd is bought and paid for by particular interests — in Connecticut that’s largely finance — but that’s the case with pretty much all of the rascals. There’s no evidence that Dodd specifically inserted this provision to help AIG, though that’d be a big story if it emerges. We’ll keep an eye on this, but don’t expect it to amount to a whole lot.