Senate Banking Committee chairman Christopher Dodd, who received $280,000 in campaign contributions from AIG, is now defending his wife’s involvement with the beleaguered insurance giant.
According to a report in RealClearPolitics.com, Jackie Clegg Dodd worked as an outside director from 2001 to 2004 for a Bermuda-based company affiliated with AIG — IPC Holdings Ltd.
In 2003, Clegg received $12,000 per year and an additional $1,000 for each IPC directors and committee meeting she attended, according to a proxy statement. Clegg served on the audit and investment committees during her final year on the board.
Dodd, whose Recovery Act amendment in February ratified hundreds of millions of dollars in bonuses to executives at AIG and who has been a recipient of campaign contributions from that struggling company, was quick to downplay his wife’s involvement.
“To try to connect the AIG bonuses and my wife’s service on the board of this company, which ended five years ago, is nothing more than a cheap political attack,” Dodd said.
But according to the RealClearPolitics report, Clegg was a busy hands-on director, attending more than 75 percent of board and committee meetings – all while serving as the managing partner of Clegg International Consultants, LLC, which she created in 2001.
In 2001, a public offering of 15 million shares of IPC stock raised $380 million. IPC simultaneously raised more than $109 million through a private placement sale of 5.6 million shares of stock to AIG -- giving AIG a 20 percent stake in IPC.
AIG sold its shares in IPC in Aug. 2006.
IPC paid millions each year to other AIG-related companies for administrative and other services.
American International Group, Inc. (AIG) is a major American insurance corporation based in New York City.
It suffered from a liquidity crisis after its credit ratings were downgraded. In Sept. 2008 the Federal Reserve Bank created an $85 billion credit facility to enable the company to meet its cash obligations.
In Nov. 2008 the U.S. government increased the total loan package to $152 billion. The company came under the gun following its allocation of about 165 million USD as bonuses to its executives.
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