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Dodd’s Production Run Is Way Down!!

Posted by Larry Doyle on April 1, 2009 1:51 PM |

Any salesperson on Wall Street is always faced with the question as to the nature of his book of business. Meaning, not only what type of business he transacts but even more importantly, with whom does he do business. While there are many fabulous salespeople on Wall Street, sales managers are forever reviewing account coverage assignments. Given these account reviews and changes, I always maintained that there was not a lot of “security” in the securities business. Ultimately, a salesperson is only as good as his book, meaning the depth and breadth of relationships.

Putting a twist on this coverage model, it appears as if Senator Chris Dodd has a problem. Aside from pure partisan politics in the midst of an economic tsunami, Dodd’s personal relationships with many financial companies has run its course. I do not mean to say that Dodd and these individuals may not maintain an ongoing relationship, but the fact is a number of financial firms which supported Dodd over the years are either bankrupt, merged, or wards of the state. (Freddie, Fannie, AIG, Citi)

Bloomberg reports:

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.

How does a career politician go about learning some new tricks after 30 plus years of feeding at the same trough? Let’s see where things stand currently in Dodd’s campaign coffers.

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.

Additionally, Dodd will not be able to placate these financial firms as he will be forced to play the populist card in his campaign.

Perhaps Senator Dodd should have done what any quality salesperson does: broaden his product knowledge, diversify the client base, and work a little harder for the rank in file as opposed to playing the political games with management. A previous piece I wrote, How Wall Street Bought Washington, deals with this topic. Now Bloomberg reports Dodd’s AIG Ties, Cash Shortage Threaten Re-Election Bid.

LD

  • Bill

    Larry, don’t forget about Dodd’s patron saint Mozilo at Countrywide, which merited Dodd exalted FOA status. That was has completely disappeared into the BAC crypt.

  • Bill

    Meant to say: That one has completely disappeared into the BAC crypt.

  • Larry Doyle

    Good point…how could I have overlooked that “customer!!”

    Always nice to have another set of eyes and ears.

  • lizzy

    Does Dodd have any likely looking challengers? Such a change is to be greatly supported by people who would like to see true transparency and accountability in our financial system.

    • Larry Doyle

      A few names that have been bandied about are Larry Kudlow, Peter Schiff (the money manager who has called the economic decline ..his biggest position has been to underweight the U.S. dollar…so he has not fared all that well) and a local State Senator from CT.

  • fiscalliberal

    We need to remember that Conn reelected Lieberman,and threw out Chris Shays and the lady from up near Harford way. One can bet that Dodd can read the tea leaves and delver what is needed.

    However, he is getting on in age and has a relatively young wife and new kids. He could say, screw it, I am going to do the right thing and go into retirement.

    As I watch his and Shelby’s hearings I kind of get the sense they are trying to do the right thing. However that could be because Bush and crew screwed things up so bad, it is a low bar to do the right thing.

    However we have to watch the late night insertions into the bills. We have to count on his opposition to alert people to that stuff.

  • Larry Doyle

    I do not Know all the details but Dodd’s father was a politician who went down due to some improper financial dealings. “apple doesn’t fall far from the tree??”






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