Senator Chris Dodd (D-Conn.) admitted on Wednesday that he was responsible for the executive bonus loophole. The provision was inserted into the historic democratic spending bill that was rushed through Congress by Democrats and President Obama.
Senate Banking committee Chairman Christopher Dodd told CNN’s Dana Bash and Wolf Blitzer Wednesday that he was responsible for adding the bonus loophole into the stimulus package that permitted AIG and other companies that received bailout funds to pay bonuses…
On Tuesday, Dodd denied to CNN that he had anything to do with the adding of that provision.
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However, Dodd did say he was pressured by Obama Administration officials to dilute the executive pay provision.
The AP reported:
On Wednesday, Sen. Chris Dodd, D-Conn., acknowledged that his staff agreed to dilute the executive pay provision that would have applied retroactively to recipients of federal aid. However, Dodd said he was not aware of any American International Group Inc. bonuses at the time the change was made.
The provision was the subject of new attention this week because, had it survived, it would have prevented AIG from granting $165 million in bonuses to employees of its financial products division.
“I’m the one who has led the fight against excessive executive compensation, often over the objections of many,” said Dodd, the chairman of the Senate Banking Committee. “I did not want to make any changes to my original Senate-passed amendment, but I did so at the request of administration officials, who gave us no indication that this was in any way related to AIG.”
3 in 4 Americans want the AIG bonuses recovered.
Related… TIME magazine is reporting that the Obama Treasury Department learned of the AIG bonuses 10 days earlier than they calaimed.