March 19, 2009 4:09 PM

Dodd Defends Himself On AIG Bonuses

By
Michelle Levi
Topics
Congress
(AP Photo/Haraz N. Ghanbari)
Senator Chris Dodd (D-Conn.) reiterated Thursday that the Obama administration should be held accountable for the legislative loophole which allowed the American International Group Inc. to give generous retention bonuses with taxpayer money.

With an edge in his voice, the Senate Banking Committee Chairman said he feels the administration ought to shoulder much of the blame for the situation, which has generated populist outrage.

"The administration sought changes in [executive compensation rules]," Dodd said. "At the time they seemed, at least in one case, relatively technical to me, having no connection whatsoever to the AIG issue. So we agreed to a couple of those changes in order to preserve the amendment."

"Had there been any connection at the time or any notification that somehow this was involved with AIG we would have rejected that entirely," he said. "But at the time that was not the connection."

Dodd admitted to CNN Wednesday that at the request of an unnamed administration official, his staff diluted the executive pay provision of the stimulus bill which would have applied retroactively to government funded companies.

He would not name any administration officials involved in the redrafting.

"For six weeks I was criticized and ridiculed for having written too restrictive a section on executive compensation, bonuses and golden parachutes," Dodd told reporters outside his Capitol Hill office today. "I find it somewhat ironic that the people who were most critical of me being too tough...are now accusing me of not being restrictive enough."

"I would have expected people to stand up a little on this matter," he said. "They sought it. I didn't."

Dodd faces a tough re-election campaign in Connecticut in 2010. Asked what effect the AIG scandal will have on his chances, Dodd said while there was once "season for politics in America," there is now a "permanent season."

Dodd also said he would be supportive of an effort to repeal the amended provision in the stimulus bill and said he is committed to retrieving taxpayer money lost in the bonuses.

And he reiterated his confidence in the Treasury Secretary Timothy Geithner. "I would be hard pressed to think of another secretary of the Treasury that has walked into the job with as many problems as this man is confronting - it is breathtaking," Dodd said, adding that Geithner is a "talented man."

An administration official tells CBS News that while Dodd did edit the provision after the Treasury department raised concerns, the department did not "insist" on amending the bill.



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by JimtheCitizen March 26, 2009 12:12 PM EDT
Impeach HIM NOW
Reply to this comment
by cereally March 20, 2009 3:38 PM EDT
is obama going to be held accountable for spending money we do not have ? hence the additional trillion he plans to throw out....didn't know we had that much laying around with nothing to do...oh yeah....the american people can pick and scratch in the dirt like we use to!
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by ocreader March 20, 2009 1:31 PM EDT
Unfortunately, the sad part of this AIG mess, is the "government" has succeeded in turning citizens against citizens, much like lenin did with the children, turning against their parents! Not saying the bonus was right, but, I'm also not going to stand there yelling "crucify them"!
Reply to this comment
by mariannpepit March 20, 2009 1:11 PM EDT
What happened to my last two comments. They should have been posted right away. Moderation does not take long. I meant what I said that Palin would read tthe stimulus bill before signing it. Obama puts too much trust in his administration and should take more responsibility as a president.
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by mariannpepit March 20, 2009 1:07 PM EDT
No matter what anyone thinks about governor Palin I am willing to bet she reads everything before signing it. Obama should have read that stimulus bill and deleted the clause that included bonuses for AIG which was suggested by Dodd and Geithner. Pelosi, Reid, Geithner and Dodd should all resign their posts. And the people who voted for them should be kicking themselves.
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by mariannpepit March 20, 2009 1:02 PM EDT
Longtree: I wonder what this generation of college students will vote Obama in office 3/-1/2 years from now since all these blunders have been made. I am sure the republicans are having a ball over the bonus clause by Dodd and Geithner that Obama didn't know existed on the stimulus bill. I am sure Pelosi and Reid knew about it. No matter what people say about Palin I am positive she reads every bill before signing it even Bill Clinton would not sign without reading it. What was Obama's problem. Being the president of the US he is suppose to be more competent than that.
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by mariannpepit March 20, 2009 12:52 PM EDT
despide: You are right in your statement. Why is Obama defending Geithner when he didn't pay his own taxes. Why didn't Obama read that stimulus bill before signing it. He took the words of Pelosi, Reid, Dodd and Geithner and thought he had an honest administration but he got fooled. And the public got duped for voting him in office. The people in this country need to get a grip and think hard before voting next time. Listen carefully to the candidates words while they are on the platform and read between the lines. This country is in a big mess and let's hope we don't go into a severe depression like 1929.
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by SAMTORRES66 March 20, 2009 9:47 AM EDT
Dodd has to GOOOOOOOO!!!!! is that simply.. RESIGN..
Reply to this comment
by despido March 20, 2009 8:58 AM EDT
Obama's definition of Transparency: I didn't know about [insert subject here], so let's move on...
Reply to this comment
by despido March 20, 2009 8:42 AM EDT
This entire administration is a pathetic joke. Recall the 'secret' letter exposed & released last week? AIG had warned Turbo Tax Timmy that if he did not hand over the PIN code to the treasury, the world would blow-up. 3 days later AIG was granted $30 Billion more.

God help us with these cowards, panderers, lobbyists and a very unknowing President supposedly in charge.
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