Dodds Aig Ties, Money Shortage Threaten Senate Re-election Bid
The Democrat has less than half the campaign cash he had at a comparable point in his last re-election bid, when he faced far fewer hurdles. Last year, he emptied an account built up largely through financial-company employees donations to pay for a presidential run; now, he has to replenish his coffers even as the firms his panel regulates struggle with losses and back away from their one-time champion turned critic.
Meanwhile, Dodd, 64, is drawing voters ire for inserting a provision into the economic-stimulus plan that had the effect of authorizing American International Group Inc. to pay bonuses to its employees.
“He has a triple-witching hour,” said former Federal Election Commission Chairman Trevor Potter, a Republican. “The industry itself is in trouble. Theyre going to be reluctant to give to him because of some of the positions he has taken, and he is going to be reluctant to be funded by them.”
Financial services account for more than 8 percent of his states jobs; Connecticut-based firms hold about a third of the global hedge-fund assets under management, according to the Connecticut Hedge Fund Association.
Cash Shortfall
Dodd began the year with $670,654 on hand; by contrast, he had about $1.6 million at the same point in his last Senate race. He ended up spending $5.7 million for his 2004 election after raising a total of $7.1 million, according to the Washington-based Center for Responsive Politics.
In 2007, Dodd transferred to his presidential campaign $4.7 million that had been raised for his 2010 Senate campaign. Now, many of his donors are already close to the maximum contribution limits per six-year election cycle, while Dodd is tied with Republican challenger and former Representative Rob Simmons, 66, according to a poll released on March 10 by Quinnipiac University in Hamden, Connecticut.
Dodds re-election bid may hold back Democrats in their quest to expand their Senate majority. The party now controls 58 seats with one election in Minnesota still in contention. A fight for Dodds seat next year clouds an otherwise bright early picture for Democrats next year: The party only has to defend 17 Senate slots, compared with 20 for the Republicans, and four Republican senators have announced their retirement.
Fundraising No Issue
Dodd adviser Jim Jordan, a former executive director of the Democratic Senatorial Campaign Committee, said money isnt an issue for his candidate.
“Our fundraising is strong in the first quarter,” Jordan said. “Were on exactly the arc we need to be to raise what we need to win.” First-quarter reports are due April 15.
Initially, Dodd sponsored a provision to limit bonus payments. During House and Senate negotiations, he said he agreed to make what he said were “relatively technical” changes when asked to do so by the Obama administration. Dodd said he didnt realize the changes would benefit AIG. He then called for repealing the provision authorizing the bonuses.
Credit-Card Rates
Amid a public firestorm, President Barack Obama, 47, and lawmakers took turns criticizing AIG for awarding the bonuses, and the House on March 19 voted to impose a 90 percent tax on the compensation. Yesterday, Dodds committee approved new restrictions on credit-card interest rates over the objections of banks.
In moving against the financial industry, Dodd is taking on his biggest source of donations. Between 1989 and 2008, three of his top four donors were financial companies: Citigroup Inc., Bear Stearns Cos. and AIG, according to the Center for Responsive Politics research group.
All three of the New York-based companies have had to turn to the government for help; JPMorgan Chase & Co. bought Bear Stearns in June. Dodd will feel the effects of the financial crisis, said Toby Moffett, a former Democratic congressman from Connecticut.
“If I was his finance chairman, I wouldnt put the banks and financial institutions-related piece of that fundraising goal at a big number,” said Moffett, 64.
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