Dodd Admits Inserting Clause That Allowed AIG bonuses at Urging of Treasury Department

March 18, 2009

(ChattahBox) — Sen. Chris Dodd (D-Conn.) just admitted on CNN that he and his peeps inserted a clause in the stimulus legislation that allowed million-dollar bonuses to insurance giant AIG to go forward.

“We wrote the language in the bill, the deal with bonuses, golden parachutes, excessive executive compensation that was adopted unanimously by the United States Senate in the stimulus bill,” Dodd told CNN’s Wolf Blitzer this afternoon.
“But for that language, there would have been no language to deal with this at all.”

According to Dodd, officials at Treasury Department expressed concern that if the government were to prohibit payouts, it risked being sued by companies like AIG, which had contracts stipulating that bonuses were to be paid. Dodd didn’t say who in the Treasury demanded the change but some would surmise that Treasury Secretary Timothy Geithner just got thrown under the bus again. Dodd’s committee modified a clause they had previously inserted into the stimulus that prohibited bonuses from being issued by bailed-out companies. An exemption was added to allow bonuses that applied to in-place contracts.

Dodd had previously said that he played no role in writing the controversial language, and was not a part of the conference committee that inserted the language in the bill.

The negative press for Dodd comes as Former Representative Rob Simmons of Connecticut announced that he plans to challenge the Senator next year in what should be a tough race.


One Response to “Dodd Admits Inserting Clause That Allowed AIG bonuses at Urging of Treasury Department”

  1. chuck egan on March 18th, 2009 9:57 pm

    First Dodd says he had nothing to do with writing the language that was in the bill, nor was he party to inserting it into the bill. Now with a bit of trasparentcy, he is forced to admit he did in fact write the language, and it would seem, has some weight in it’s inclusion in the bill. I’m appaled that these politicians can stand up and lie to the American public, and then try to appear as accountability for their mistakes is not to be questioned. Treasury has now announced that these bonuses, where known to exist, long before the stimulus bill was passed. Dodd also comments that this bill was passed unanimously, however, It seems the only unanimous vote was in respect to DEM. votes. Although our new “Admin” calls for no lobbyists in cabnit posts, but allows the heads of Gov’t banking committee’s to accept $280,000 in contributions from AIG, along with others, seems to get to the heart of the problem, but then they use a photo opp. to appear disturbed, and outraged by the news of these bonuses. I believe all this transparentcy in Gov’t will be very good heading into the next round of elections….

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