Sen. Dodd: It Wasn’t My Idea to Allow Bonuses
DODD RESPONSE
Norwalk Hour
Tait Militana
Boston University Washington News Service
3/19/09
WASHINGTON – Following days of attacks from Republican lawmakers over language that allowed bonuses to be paid to AIG employees, Sen. Chris Dodd, D-Conn., fired back Thursday evening, saying the Treasury Department requested the changes to protect bonuses and that they seemed “almost technical in nature at the time.”
“It wasn’t my idea, my proposal, my suggestion,” Dodd said in a conference call with Connecticut reporters. “It came from the administration. They gave us no indication whatsoever that these were related in anyway to AIG and I agreed to those changes.”
Dodd’s response came after days of denying he had anything to do with the legislation early in the week. He later admitted Wednesday that he had in fact authored the amendment to restrict bonuses and knowingly diluted it at the behest of the administration. According to Dodd, the mixed messages were a misunderstanding.
“I regret deeply that this matter has become confused,” Dodd said.
The language added a loophole to an amendment in the stimulus bill that would have restricted bonuses paid to employees of companies that had received funds from the Troubled Assets Relief Program. Dodd said he did not know who requested the changes, but it was someone at the staff level in the Treasury Department.
Treasury Secretary Timothy Geithner told CNN Thursday that his department requested that Dodd change the amendment out of fear that numerous lawsuits would follow because the bonuses were contractually guaranteed.
Several House Republicans jumped on the controversy, saying Democrats were irresponsible in crafting the bonus modifications and should have known the potential consequences.
U.S. Rep. Joe Wilson, R-S.C., said, “Democrats wrote the bill alone, secretly and yet they act surprised.”
Rep. John Boehner, R-Ohio, the House minority leader, said the controversy proved that Democrats moved too quickly on the stimulus bill, forcing it upon Congress without proper revision.
“It’s pretty clear not one person read [the stimulus bill],” Boehner said in his weekly legislative address.
Dodd said had he known the change would have let taxpayer money go to executive bonuses at AIG, he would not have accepted it.
“Had I known at the time that there were any AIG bonuses involved – that this was somehow going to assist in this matter – I would have rejected it completely,” Dodd said.
He also said he would return any campaign contribution from AIG employees who have received bonuses.
Dodd also addressed concerns that the controversy would hurt his chances at reelection, saying it is something that he cannot worry about. Republican Rob Simmons, who represented the 2nd District in the U.S. House until being defeated by Joe Courtney in 2006, announced this week that he would challenge Dodd in 2010.
“If I sat there everyday and worried where polls were, then you couldn’t do this,” said Dodd. “I can’t function that way.”
Dodd also said he supported a motion to implement at 90 percent tax on the AIG bonuses passed Thursday by the House 328-93. He said while his preference would be for the employees to voluntarily give back their bonuses the government must get as much back as it can
“I’m in favor of whatever surcharge we can get away with,” Dodd said.
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