Tags : chris dodd, linda mcmahon, mortgage crisis, senate, senator, wwe
Dodd Faces Election Challenge From World Wrestling Entertainment CEO
Linda McMahon, wife of wrestler and World Wrestling Entertainment Chairman Vince McMahon, resigned as chief executive of her family’s multimillion sports entertainment company on Wednesday to challenge Sen. Chris Dodd (D-CT), a 2008 White House contender who has kept his seat for three decades, in next year’s elections.
The 60-year old McMahon has transferred her executive duties to her husband to focus on her campaign, according to a short statement from WWE. She had announced four weeks back that she was considering running for the Senate.
A Republican, McMahon early this year was appointed by Connecticut Gov. Jodi Rell to the 11-member state Board of Education, which establishes standards and policies for 149 local and 17 regional school districts.
A number of state lawmakers had opposed the nomination of someone from an industry that uses violence and sex for entertainment, but the governor had cited McMahon’s “leadership abilities” in “transforming” Stamford-based WWE into a global company. McMahon’s term ends March 2011.
McMahon is a French major from East Carolina University who led the creation of WWE’s Get R.E.A.L. educational and literacy programs, including the company’s nationwide WrestleMania Reading Challenge in collaboration with the Young Adult Services Library Association.
A mother of two college graduates who now work as WWE executives, McMahon also led the establishment of a non-partisan voter registration drive called Smackdown Your Vote! in 2000 in partnership with the National Association of Secretaries of State, Project Vote Smart, Youth Vote 2000 and MTV’s Choose or Loose.
McMahon joins three other Republicans who have entered the race: state Sen. Sam Caligiuri, businessman and former Amb. to Ireland Thomas Foley, and former U.S. Rep. Rob Simmons.
Only one Democrat, former Al Gore campaign aide Merrick Alpert, has launched a campaign against Dodd.
Dodd, chairman of the Senate Banking Committee, is seeking a six term following a difficult year.
In August, he lost his closest friend in the Senate, Ted Kennedy, and underwent surgery for early stage prostate cancer. He had temporarily presided over the Senate Health panel on behalf of the ailing Kennedy, but last week said he would not assume the chairmanship amid grumblings from the banking industry about his continued regulation ahead of a tough re-election campaign.
Also in August, the Senate Ethics panel said Dodd had not not violated any rules when he refinanced his home mortgages in 2003 with controversial lender, Countrywide Financial.
Dodd faced allegations that he had received loans with below-market rates from Countrywide. He allegedly belonged to a group, which included Sen. Kent Conrad (D-ND), former Housing Sec. Alphonso Jackson and former U.N. ambassador and assistant Secretary of State Richard Holbrooke, that the company called FAOs or Friends of Angelo. The name refers to the company’s chief executive, Angelo Mozilo.
The allegations, which Dodd had repeatedly denied, raised questions about the ethics of receiving special loans while in public office at a time when the subprime mortgage crisis was deepening.
Earlier this year, public outcry over $165 million in bonuses given by American International Group to employees later focused on Dodd after his role in why the bonuses were paid was revealed.
The Federal Reserve took over 79.9 percent stake of AIG with a two-year $85 billion loan in September 2008. The bonuses were not under the restrictions on executive pay under the Obama administration since they were outside the oversight provisions of the financial bailout plan or Troubled Asset Relief Program (TARP), which Congress passed October 2008, and the $787 billion economic stimulus, which became law in February.
The stimulus initially had an amendment from Dodd limiting executive pay from companies receiving federal assistance. But that amendment was changed to allow bonuses under previous contracts.
Dodd had at first denied he had anything to do with the modified amendment, but then admitted that he had “agreed reluctantly” because the Obama administration had pushed him to do so.
At the time of the controversy, Dodd also faced calls from Republicans to return campaign contributions from AIG.
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