March 19th, 2009
04:25 PM ET
14 years ago

Geithner: Treasury pushed for bonus loophole

[cnn-photo-caption image= caption="Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill allowing bonuses to be paid."](CNN) - Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.

In an interview with CNN's Ali Velshi, Geithner said the Treasury Department was particularly concerned the government would face lawsuits if bonus contracts were breached.

Watch: Geithner on AIG bonuses

Dodd admitted to CNN Wednesday he'd added the controversial provision after a Treasury official pushed for it. Earlier in the week, Dodd had said he had not played any role in the addition of the loophole.

Geithner told Velshi Thursday he takes full responsibility for the situation.

Also in the interview, airing in part at 5 pm ET on CNN, Geithner said:

– He does not believe TARP or the stimulus bill was rushed through Congress

– Calls for resignation are part of the job

-Officials will make sure that any further money comes with provisions (including executive compensation)

-His team will have a detailed plan for the banks w/in the next couple of weeks

-The recession will likely end in 2009, and 2010 will be a year of growth

See the comments this afternoon at 5 pm ET on CNN

Filed under: Chris Dodd • Timothy Geithner
soundoff (107 Responses)
  1. Carol

    The fact of the matter is there is nothinig congress can do as far as taking way those bonuses and taxing them contracts are contracts they are legaly binding and this dog and pony show is just typical of them.

    Obama saying lets moveo n was his way of protecting Geitner


    March 19, 2009 04:00 pm at 4:00 pm |
  2. bob

    at last it is refreshing to have politicians actually step up to the plate and admit their errors..we all make them in life and we should all follow their example the choices we all make are ours to hold AND be accountable for their results good AND bad..I respect you Mr Geithner. Cant say this for guys like Bush or that cheney did you hear him on Sunday all he can do is blame the other guy. You are a cheap low life Mr cheney be a man for once in your life and admit you made mistakes..BIG ONES if measured to this.

    March 19, 2009 04:00 pm at 4:00 pm |
  3. The Death of America by Obama

    Geinther, you need to go. And if you don't, hopefully, obama will pay the price for keeping he should.
    obama is such a liar and such a phony it's hard to even look at the man when he's telling us how "swell" you are....what a "swell" job you're doing.
    I really wish there would be a great flood in Washington to drown all the rats that have infested the place.

    March 19, 2009 04:00 pm at 4:00 pm |
  4. Mike

    I like how everybody disregards his reasoning behind this "loophole" and act like they have never made a bad judgment call. He was up front and honest about it. Get off your high horses and start thinking rationally.

    March 19, 2009 04:01 pm at 4:01 pm |
  5. John from LA

    FINALLY-the people who voted for the Almighty O are getting it-HIS TEAM STINKS!!!!
    BO-Keep him in...for now.

    March 19, 2009 04:01 pm at 4:01 pm |
  6. Chopstix

    Geitner was wrong, but at least we finally have people owning up to their errors. The nay sayers continue to be oblivious to the lies and arrogance that got us here. The Obama administration inherited a living hell that we all are paying for and the w followers seem unable to place responsibility where it belongs–greedy, rich, arrogant politicians and executives that focused only on themselves!

    March 19, 2009 05:10 pm at 5:10 pm |
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