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April 29, 1998
U.S. Senator Christopher J. Dodd gets The Golden Leash Award

The Golden Leash is a symbol of the ties between special interest money and elected officials. It is awarded to Members of Congress who demonstrate egregious conduct in the quid pro quo practice of dollar democracy.

This award serves as a reminder of Senator Dodd’s acceptance of $910,304 in campaign cash from January 1993 to December 1997 from the Securities, Investment, Accounting and High-Tech Computer industries, and in turn, using his position as ranking Democrat on the Securities Subcommittee of the Senate Banking, Housing, and Urban Affairs Committee to promote special favors for his "cash constituents" at the expense of his real constituents back home, and the American people.

WASHINGTON – Democratic Senator Christopher J. Dodd of Connecticut became the second recipient of the "Golden Leash Award" from Public Campaign today, a dubious honor recognizing his ties to wealthy special interests who help fund his campaigns.

Dodd has been handsomely rewarded with $910,304 from the securities, investment, accounting and high-tech computer industries since 1993. Meanwhile, there is no Senate Democrat who has done more for Wall Street and these related industries at the expense of consumers from his position as ranking Democrat on the Securities Subcommittee of the Senate Banking, Housing and Urban Affairs Committee.

The Golden Leash Award is a new incarnation of former Senator William Proxmire's legendary Golden Fleece, infamous for spotlighting government waste, fraud and abuse.

"The Golden Leash is a symbol of the tight hold that special interests have over our elected officials through their campaign contributions," said Ellen Miller, executive director of Public Campaign.

"Senator Dodd serves as a shining and shameful example of the daily practice of dollar democracy, where special interests and their campaign contributions seem to have more influence over politicians than the public interest."

"The people of Connecticut and this country have placed their trust in Senator Dodd who in turn has appeared to place his trust – and his votes – with the fat cats on Wall Street."

As examples of Dodd's generosity toward his major campaign financiers, Public Campaign's report cites the following examples: Dodd was an original cosponsor of the Private Securities Litigation Reform Act of 1995, and he helped to organize the Senate's override of President Clinton's veto. It ultimately became law in 1995. While the industry said the law would cut down on frivolous securities lawsuits, many say the new law would make it easier to commit securities fraud on unsuspecting investors and more difficult for the victims of fraud to recover their losses.

The National Securities Market Improvement Act, another bill that Dodd fought earnestly for, was supposed to provide oversight of the mutual fund and securities industry. While it contained some good consumer provisions, it ultimately weakened oversight that would have protected investors. And, in October of last year, Dodd lined up as a cosponsor of the Securities Litigation Uniform Standards Act, an extension of the earlier securities litigation legislation. The bill was strongly supported by The Uniform Standards Coalition, an ad-hoc group of securities, accounting and high-tech computer firms. Even trial lawyers who opposed such securities litigation legislation, and heavy givers in their own right, especially to Democrats, could not compete with the industry's donations or lobbying efforts.

Rather than beef up consumer protections and enforcement for investors – at a time when more people are investing in stocks and mutual funds for their retirements – Congress is busy protecting Wall Street, with help from Senator Dodd. The Investment Company Institute, the main trade association for the mutual fund industry, reports that Americans currently have more than $1 trillion earmarked for their retirements invested in mutual funds. Most investors lack a basic understanding of financial terms and how investments work. Meanwhile, securities fraud is on the rise.

Of the $910,304 in campaign contributions that Senator Dodd received between January 1993 and December 1997, Wall Street and other investment firms came in as the heavy hitters, with firms like Goldman, Sachs & Co., Morgan Stanley, Salomon Brothers and others donating $523,551 in PAC and individual contributions. The accounting industry – perhaps the biggest winners in the 1995 securities litigation reform law – donated $345,903 in PAC and individual contributions. This includes such giants as Price Waterhouse, Ernst & Young and Coopers & Lybrand, among others. Deloitte & Touche's contributions to Senator Dodd increased nearly five-fold from 1995 to1996 soon after Congress passed the reform law the industry championed. The computer industry – a fairly new player in the campaign contribution field – ponied up $40,850 in contributions.

Public Campaign's Golden Leash Award focuses public attention on politicians who do particularly egregious favors for their cash constituents, highlighting their captivity to special interests at the expense of average voters, taxpayers and the public at large. Representative Bill McCollum of Florida was the first recipient of the Golden Leash last month. Senator William Proxmire is a member of Public Campaign's National Advisory Board and has bequeathed to us his legendary Golden Fleece Award. It was Senator Proxmire himself who said that Congress has a "golden leash" around its neck and that he sees a connection between the pork-barrel politics he highlighted years ago and the special interest campaign contributions that have grown exponentially through the years.

Public Campaign is a non-partisan, non-profit organization working on behalf of comprehensive campaign finance reform.