March 18th, 2009
06:54 PM ET
14 years ago

Dodd: Administration pushed for language protecting bonuses

[cnn-photo-caption image= caption="The president, joined by his lead economic advisers, spoke with the press about AIG's bonuses from the South Lawn of the White House Wednesday."]
WASHINGTON (CNN) - Senate Banking committee Chairman Christopher Dodd told CNN Wednesday that he was responsible for language added to the federal stimulus bill to make sure that already-existing contracts for bonuses at companies receiving federal bailout money were honored.

Watch: I added bonus loophole, says Dodd

Dodd acknowledged his role in the change after a Treasury Department official told CNN the administration pushed for the language.

Both Dodd and the official, who asked not to be named, said it was because administration officials were afraid the government would face numerous lawsuits without the new language.

Dodd, a Democrat, told CNN's Dana Bash and Wolf Blitzer that Obama administration officials pushed for the language to an amendment designed to limit bonuses and "golden parachutes" at those companies.

"The administration had expressed reservations," Dodd said. "They asked for modifications. The alternative was losing the amendment entirely."

On Tuesday, Dodd denied to CNN that he had anything to do with adding the language, which has been used by officials at bailed-out insurance giant AIG to justify paying millions of dollars in bonuses to executives after receiving federal money.

Updated 6:54 p.m.

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Filed under: AIG • Chris Dodd • Obama administration • Popular Posts
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